Archaea Energy, an emerging leading company in the development and advancement of renewable natural gas (RNG) announced today an agreement to combine itself with Aria energy. The combined company will turn into the biggest RNG platform in the U.S.
Firstly, the combined company will dedicate itself to reducing carbon emissions through landfill gas conversion, CO2 sequestration, and green hydrogen.
Secondly, Archaea will leverage from Aria’s position in the energy transition sector, as, led by Rice Acquisition Corporation (RAC), is one of the largest companies in the North American landfill gas (LFG) sector.
Thirdly, the anticipated value of the combination of RAC, Archaea and Aria is $1.15 billion at close, which is expected in the third quarter of 2021. It will be listed on the NYSE under the ticker symbol “LFG”.
On the other hand, RNG is becoming a true bridge for sustainability, as it offers long-term decarbonization for companies, institutions and energy infrastructure. It is the most sustainable solution for capturing carbon emissions generated by food waste; also wastewater, agriculture waste and landfill gas.
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Archaea Energy with long-term, fixed-price RNG agreements
Therefore, RNG is becoming an increasingly demanded solution in the North American and worldwide clean energy supply chain. Consequently, 60 to 70% of the combined company’s RNG output will be contracted under fixed-price offtake agreements.
In addition, Brian McCarthy, Archaea Energy CFO, said. “Archaea’s expanding customer base; also, the growing demand for RNG; and also, our team’s experience and ability to produce and deliver pipeline-quality RNG through the existing natural gas infrastructure will drive our growth.”
He also remarked. “The institutional investor confidence in our vision will also enable us to deliver a low-risk development program with two-thirds of our RNG production under long-term, fixed-price arrangements with investment-grade buyers.”
Finally, Nicholas Stork, Archaea’s CEO, stated. “We are on a trajectory to become a leading RNG platform in North America; we serve our decarbonization partners under long-term supply agreements. Therefore, our mission is also to reduce the carbon intensity (CI) of vented and flared methane and empower corporations; universities, municipalities and utilities to meet their sustainability goals.”