Energy, Industry Updates

UGI and Archaea Energy Form Joint Venture to Develop RNG Project in Pennsylvania

UGI and Archaea Energy Enter Joint Venture

On February 13, 2023, UGI Energy Services, LLC, a subsidiary of UGI Corporation, and Archaea Energy Inc., a subsidiary of bp, announced that they recently formed a joint venture, Aurum Renewables, LLC, to build a renewable natural gas ('RNG') project. This project will be located in the Commonwealth Environmental Systems landfill in Hegins, Pennsylvania. Archaea Holdings, LLC, has a 60% ownership interest, while the UGIES subsidiary has a 40% ownership interest in the joint venture.

UGIES will contribute its current 11-megawatt landfill gas-to-electricity facility to the joint venture. Through the joint venture, Aurum will construct a new RNG facility that will convert landfill gas into RNG. The project is anticipated to have the ability to generate approximately 5,000 MMBtu per day of pipeline-grade RNG upon completion. Archaea, a renowned RNG company, will lead the new RNG facility's design, engineering, building, and operation. In addition, UGIES will direct the marketing of the RNG produced by the facility.

Brian McCarthy, Chief Financial and Commercial Officer of Archaea, shared, "We are very excited to continue to expand our partnership with UGI, which, as a result of this joint venture, now spans across the full RNG value chain of production, transportation, and commercial offtake." He added, "This new RNG facility will be one of the largest in the Archaea portfolio and is expected to bring significant environmental and social benefits to southeast Pennsylvania communities. This new facility will also bring global benefits by reducing greenhouse gas emissions and providing a domestically-produced, affordable, low-carbon source of energy."

(Source – Business Wire)

About UGI Corporation

UGI Corporation distributes and markets energy-related goods and services and is headquartered in King of Prussia, Pennsylvania. Through its subsidiaries, the company manages natural gas and electric utilities in Pennsylvania and natural gas utilities in West Virginia. It distributes LPG domestically (through AmeriGas) and internationally (through UGI International). It also manages midstream energy assets in Pennsylvania, West Virginia, and Ohio and electric generation assets in Pennsylvania. In addition, it provides energy marketing, including the marketing of renewable natural gas, in the Mid-Atlantic region of the United States and California.

About Archaea Energy

Archaea Energy is one of the largest producers of renewable natural gas ('RNG') in the United States, with an industry-leading RNG platform. The company has vast expertise in designing, constructing, and running RNG facilities to capture waste emissions and transform them into low-carbon fuel. It seeks to redefine the RNG industry by introducing a systematic and sustainable approach to RNG project development, from a cost-effective manufacturing approach utilizing the best available technologies and processes to a differentiated commercial system centered on selling RNG under long-term, fixed-price agreements to creditworthy partners.

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