Gevo Company announced that it has signed an agreement with BP Canada Energy Marketing Corp to sell the production of its wholly-owned dairy manure renewable natural gas (RNG) project company, a press release issued by Gevo declared.

The RNG project is located in northwest Iowa and is currently under construction.

It is expected to start production by early 2022.

The project is estimated to produce about 335,000 metric million thermal unit (MMBtu) of RNG per year.

RNG-fueled vehicles are estimated to lower emissions by 95% than those fueled by gasoline or diesel on a lifecycle basis, according to US Department of Energy Study.

NW Iowa RNG is expected to generate cash distributions to Gevo of approximately $9 to $16 million per year.

“RNG is proving to be a key fuel in the energy transition. bp has a value chain that allows RNG to reach the transportation market, and it’s a pleasure to work with a company that shares our vision of a low-carbon future. This is an excellent opportunity to meet the growing demand for RNG and to expand our RNG business. We are glad to be working with bp”, said Patrick R. Gruber, CEO of Gevo .