SPX4,274.04-31.16 -0.72%
DIA340.20-1.54 -0.45%
IXIC12,938.12-164.43 -1.25%

Archaea Signs 5-Year Renewable Natural Gas Agreement With UGI Utilities, Inc.; Financial Terms Not Disclosed

Contract to deliver over 300,000 MMBtu per year of RNG HOUSTON--(BUSINESS WIRE)-- Archaea Energy Inc. (“Archaea”) (NYSE:LFG), an industry leading renewable natural gas (“RNG”) company, announced

Benzinga · 07/27/2022 17:18

Contract to deliver over 300,000 MMBtu per year of RNG

HOUSTON--(BUSINESS WIRE)-- Archaea Energy Inc. (“Archaea”) (NYSE:LFG), an industry leading renewable natural gas (“RNG”) company, announced today that its wholly-owned subsidiary Archaea Energy Marketing LLC has entered into a medium-term RNG purchase and sale agreement with UGI Utilities, Inc. (“UGI Utilities”), a Pennsylvania-based natural gas and electric utility and wholly-owned subsidiary of UGI Corporation (NYSE:UGI). UGI Corporation is a distributor and marketer of energy products and services, including natural gas, liquified petroleum gas, electricity and renewable energy solutions.

Under the agreement, which was recently signed and received the necessary regulatory approvals, UGI Utilities will purchase 331,785 MMBtu of RNG generated by Archaea annually from its Assai RNG facility for a fixed fee for a period of 5 years. Deliveries under the agreement commenced on July 1, 2022.

“We are very excited to launch an RNG sales partnership with UGI with the signing of this five-year agreement,” said Brian McCarthy, Archaea’s Co-founder, Chief Investment Officer, and Interim Chief Financial Officer. “This is our second term agreement signed with a U.S. utility, and we are excited to be expanding our partnerships with entities across new geographies that are supportive of RNG and its decarbonization impacts. We also believe this partnership is the first step toward additional, longer-term commercial offtake opportunities with Pennsylvania utilities that can utilize our RNG to reduce their environmental footprints and enhance their sustainability.”

"The commencement of this pilot program is a significant step forward as we continue to develop sustainable, environmentally responsible energy solutions for our customers,” said Robert F. Beard, Executive Vice President - Natural Gas, Global Engineering, Construction and Procurement, UGI. “UGI remains committed to developing renewable energy sources for the communities we serve.”