Oil giant BP completes £2.7bn purchase of US renewable energy firm Archaea
Oil giant BP has completed the purchase of renewable natural gas (RNG) provider Archaea Energy for almost £3bn.
The purchase of the Texas-based firm will help to expand its presence in the US biogas industry, accelerating its bid to decarbintion.
It has been agreed for $3.3 billion (£2.7bn) in cash, as well as around $800 (662m) of net debt2.
Archaea currently operates 50 RNG and landfill gas-to-energy sites, producing over 6,000 barrels of fuel a day. The deal would help to provide a 50 per cent increase to BP’s biogas production ability.
Bernard Looney, bp chief executive, said: “Archaea is a fantastic fast-growing business, and bp will add distinctive value through our trading business and customer reach.
“It will accelerate our key bioenergy growth engine, creating a real leader in the biogas sector, and support our net zero ambition. And, importantly, we’re doing this while remaining focused on the disciplined execution of our financial frame. Investing with discipline into the energy transition, creating further value through integration – this is exactly what bp’s transformation into an integrated energy company is all about.”
CEO of Archaea Energy, Nick Stork, said it “has become one of the largest and fastest growing RNG platforms in the US and today’s announcement will further enable this business to realise its full potential. bp is a world-class partner with an operational history in the RNG value chain that is fully aligned with ours and our partners’, and I look forward to our hard-working team joining the bp organization to help achieve their bioenergy goals.”