A green gas purchase agreement (GGPA) is a contract between a renewable gas producer and a customer, typically a gas utility or large corporation, to purchase and use renewable natural gas (RNG) as a substitute for traditional natural gas. RNG is derived from organic waste sources such as landfills, dairy farms, and wastewater treatment plants, and is a sustainable alternative to fossil fuels.

The GGPA typically outlines the terms of the purchase, including the volume and price of RNG, the term of the agreement, and the delivery and transport of the gas. The agreement also includes provisions for quality standards, measurement and verification of the RNG, and environmental attributes associated with the RNG such as renewable energy credits.

The primary benefit of a GGPA is the reduction of greenhouse gas emissions. RNG production captures and reuses methane that would otherwise be released into the atmosphere, thereby reducing the overall carbon footprint of the customer. GGPA can also provide a secure and reliable source of energy for the customer, as RNG production is not subject to the same price fluctuations as traditional natural gas.

GGPA is becoming increasingly popular as more companies and utilities seek to reduce their carbon footprint and meet sustainability goals. Examples of companies that have entered into GGPA include Amazon, Google, and Walmart. The use of GGPA has also been encouraged by government policies such as California`s Low Carbon Fuel Standard and the Renewable Fuel Standard.

In conclusion, a green gas purchase agreement is a contract between a renewable gas producer and a customer to purchase and use renewable natural gas as a substitute for traditional natural gas. GGPA can provide a secure and reliable source of energy while simultaneously reducing greenhouse gas emissions. As the demand for sustainable energy sources continues to grow, GGPA is likely to become an increasingly important tool for companies and utilities to meet their sustainability goals.