Archaea Energy Signs 5-Year RNG Agreement With UGI Utilities

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 Five Years

An inside look at Archaea’s SWACO RNG production facility in Grove City, Ohio.

Archaea Energy Inc. (Archaea), a renewable natural gas (RNG) company, announced 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), a Pennsylvania-based natural gas and electric utility and wholly owned subsidiary of UGI Corporation. 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 five years. Archaea said that 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 US 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 use our RNG to reduce their environmental footprints and enhance their sustainability.”

Archaea has kicked its RNG investments into warp drive with more than US$1 billion worth of investments. The company is developing a portfolio that could make it the largest RNG producer in the United States by year’s end.