Renergen, the South African alternative energy company, signed an agreement with Anheuser-Busch for the delivery of natural gas for trucks displacing diesel use.
According to its filing to the Johannesburg Stock Exchange, Renergen and Anheuser-Busch signed the offtake deal through their respective units, Tetra4 and The South African Breweries (SAB).
The agreement sees the initial rollout of compressed natural gas to a small fleet of trucks in the Gauteng area, using gas from Tetra4’s Virginia operations.
This will be upgraded to a significantly larger fleet to run on liquified natural gas (LNG) once Tetra4’s plant reaches operational status in 2019, the statement reads.
Renergen’s unit Tetra4 is developing a liquefied natural gas (LNG) production facility, becoming the first South African company to produce LNG.