Contract to deliver over 300,000 MMBtu per year of RNG
HOUSTON, July 27, 2022--(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."
Archaea Energy Inc. is one of the largest RNG producers in the U.S., with an industry-leading platform and expertise in developing, constructing, and operating RNG facilities to capture waste emissions and convert them into low carbon fuel. Archaea’s innovative, technology-driven approach is backed by significant gas processing expertise, enabling Archaea to deliver RNG projects that are expected to have higher uptime and efficiency, faster project timelines, and lower development costs. Archaea partners with landfill and farm owners to help them transform potential sources of emissions into RNG, transforming their facilities into renewable energy centers. Archaea’s differentiated commercial strategy is focused on long-term contracts that provide commercial partners a reliable, non-intermittent, sustainable decarbonizing solution to displace fossil fuels.
Additional information is available at www.archaeaenergy.com.
This release contains certain statements that may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that do not relate strictly to historical or current facts are forward-looking and usually identified by the use of words such as "anticipate," "estimate," "could," "would," "should," "will," "may," "forecast," "approximate," "expect," "project," "intend," "plan," "believe" and other similar words. Forward-looking statements may relate to expectations for future financial performance, business strategies or expectations for Archaea’s business. Forward looking statements are based on current expectations, estimates, projections, targets, opinions and/or beliefs of Archaea, and such statements involve known and unknown risks, uncertainties and other factors.
The risks and uncertainties that could cause those actual results to differ materially from those expressed or implied by these forward looking statements include, but are not limited to, general economic conditions and the possibility that Archaea may be adversely affected by general economic, business and/or competitive factors; and other risks and uncertainties indicated in Archaea’s Annual Report on Form 10-K for the year ended December 31, 2021 and Archaea’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, including those under "Risk Factors" therein, and other documents filed or to be filed by Archaea with the Securities and Exchange Commission.
Accordingly, forward-looking statements should not be relied upon as representing Archaea’s views as of any subsequent date. Archaea does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws.
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