As part of the deal, BP will pay pay $155m to acquire Clean Energy's existing biomethane production facilities and its share of two new facilities under construction.

Clean Energy’s existing biomethane production facilities are situated in Canton of Michigan and North Shelby of Tennessee, while facilities under construction are in Oklahoma City and Atlanta of Georgia.

The deal also includes the acquisition of Clean Energy’s existing third-party supply contracts for renewable natural gas.

BP has also signed a long-term supply contract with Clean Energy to support its downstream renewable natural gas business.

Clean Energy will purchase renewable natural gas fuel from BP to continue to sell it as Redeem branded renewable natural gas fuel at its stations.

The firm will collect royalties on gas purchased from BP, which is additional to any payment under BP’s contractual obligation.

In 2016, Clean Energy sold 60 million gasoline gallon equivalents of Redeem to the customers across multiple states.

BP supply and trading business CEO Alan Haywood said: “BP is committed to supporting developments toward a lower-carbon future and, working with Clean Energy, we believe we will be well-positioned to participate in the growth of this lower-carbon fuel in the US.”

Clean Energy president and CEO Andrew Littlefair said: “This transaction will help to take it to the next level. BP’s investment in and focus on renewable natural gas supply will ensure that Clean Energy can meet the growing demand of our customers for low-carbon, renewable fuel.”