Cargill, a provider of food, agricultural and risk management products and services, and Environmental Power Corp., a developer of renewable biofuels, announced Tuesday a strategic alliance to identify renewable energy and greenhouse gas offset opportunities.
The business development agreement will involve Cargill and Environmental Power's Microgy subsidiary.
The companies will collaborate on finding opportunities for farmers and others in the food supply chain to turn their waste products into biobased energy and carbon offset credits and share in the resulting revenue streams.
The agreement also includes provisions for allowing Cargill warrants on the purchase of stock in Environmental Power.
Microgy builds, owns and manages facilities that produce renewable natural gas or other energy from food and animal waste, and can earn greenhouse gas production offset credits that could be traded on international carbon credit exchanges.