Archaea Energy signs RNG agreement with Northwest Natural Gas

Archaea Energy

Archaea Energy, one of the largest renewable natural gas (RNG) producers in the United States, announced that it signed a long-term RNG purchase and sale agreement with Northwest Natural Gas Company this Tuesday.

Firstly, Northwest Natural Gas Company is a subsidiary of NW Natural Holdings, which provides natural gas service to approximately 2.5 million people in Oregon and Southwest Washington.

Moreover, under the agreement with Archaea Energy, NW Natural will purchase the environmental attributes generated by Archaea related to up to one million MMBtu of RNG annually. It would do so from its portfolio of RNG production facilities for a fixed fee for 21 years.

Furthermore, the agreement will commence in early 2022, with the total annual quantity beginning in 2025. The RNG from Archaea produced for this partnership will have a positive impact through avoided methane emissions at U.S. landfills and displacement of conventional natural gas.

In addition, the agreement marks the third RNG contract for NW Natural under the Oregon Senate Bill 98, which supports renewable energy procurement and investment by natural gas utilities.

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Archaea Energy building a decades-long relationship

In fact, after the current agreement, NW Natural has signed agreements with options to purchase or develop RNG totaling about 3% of NW Natural’s annual sales volume in Oregon. Consequently, it would be a solid addition to its RNG developments in the state.

About the matter, David H. Anderson, NW Natural president, and CEO said. “We’re excited to work with the experienced leadership at Archaea to help lower emissions on behalf of our customers.”

He also commented. “This agreement is another meaningful step on the path to achieving our long-term carbon neutrality goal while also helping communities close the loop on waste.”

On the other hand, Nick Stork, Archaea co-founder, and CEO said. “We are pleased to partner with NW Natural and look forward to our multi-decade business relationship.”

Finally, he commented. “This agreement, our first with a U.S. utility, is a testament to the strength of our commercial offerings and highlights our ability to help utilities provide lower-carbon options to their customers and achieve their sustainability goals.”

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