Archaea Energy Announces Expansion of Commercial Partnership with FortisBC via New 20-Year Renewable Natural Gas Agreement
27 Januar 2022 - 10:30PM
Business Wire
Deliveries expected to begin in 2022 and
increase to up to 8 million gigajoules (approximately 7.6 million
MMBtu) per year of RNG by 2025
Archaea Energy Inc. (“Archaea” or “the Company”) (NYSE: LFG), an
industry-leading renewable natural gas (“RNG”) company, announced
today that it is expanding its commercial partnership with FortisBC
Energy Inc. (“FortisBC”), a subsidiary of Fortis Inc. (NYSE: FTS)
by entering into a new long-term RNG purchase and sale agreement.
This is the second long-term commercial agreement between Archaea
and FortisBC, a leading energy solutions provider in British
Columbia, Canada, serving approximately 1.2 million customers with
natural gas, electricity, propane and renewable energy
solutions.
Under the agreement, which is subject to regulatory approval by
the British Columbia Utilities Commission, FortisBC expects to
purchase up to 8 million gigajoules (approximately 7.6 million
MMBtu) of RNG generated by Archaea annually from its portfolio of
RNG production facilities for a fixed fee for a period of 20 years.
The agreement is expected to commence in 2022 upon regulatory
approval, with the full annual quantity beginning in 2025. The RNG
produced by Archaea for this long-term partnership is expected to
help FortisBC meet its stated goal of having 15 percent of its
natural gas supply be renewable by 2030.
“We are excited to grow and strengthen our long-term partnership
with FortisBC by entering into another long-term agreement in just
over a year,” said Brian McCarthy, Archaea’s Chief Investment
Officer. “This landmark deal, which we believe is the largest RNG
supply contract signed to date, is enabled by the breadth of our
RNG project portfolio and highlights our ability to scale
production with our partners’ growing demand for lower-carbon
solutions. FortisBC is a pioneer in RNG usage and at the forefront
of utility decarbonization. Archaea is honored to partner with
FortisBC and support their ambitious goals for British
Columbia.”
”If approved, this agreement would be our largest RNG supply
agreement to date,” explained Joe Mazza, vice-president of energy
supply and resource development with FortisBC. “We’re committed to
the significant and rapid expansion of our renewable gas supply and
we’re excited to work with a renewable energy leader like Archaea
to deliver affordable, carbon neutral gas to British
Columbians.”
FortisBC’s RNG program, which began in 2011, was the first
utility program in North America to offer RNG to customers.
FortisBC is working towards having around 75 per cent of the
natural gas in its system derived from renewable sources by
2050.
ABOUT ARCHAEA
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.
FORWARD-LOOKING STATEMENTS
This press release contains certain statements that may include
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended (the “Securities Act”), and
Section 21E of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). 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. Specifically,
forward-looking statements may include statements concerning market
conditions and trends, earnings, performance, strategies, prospects
and other aspects of 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:
(a) the ability to recognize the anticipated benefits of the
business combinations and any transactions contemplated thereby,
which may be affected by, among other things, competition, the
ability of Archaea to grow and manage growth profitably and retain
its management and key employees; (b) the possibility that Archaea
may be adversely affected by other economic, business and/or
competitive factors; (c) Archaea’s ability to develop and operate
new projects; (d) the reduction or elimination of government
economic incentives to the renewable energy market; (e) delays in
acquisition, financing, construction and development of new
projects; (f) the length of development cycles for new projects,
including the design and construction processes for Archaea’s
projects; (g) Archaea’s ability to identify suitable locations for
new projects; (h) Archaea’s dependence on landfill operators; (i)
existing regulations and changes to regulations and policies that
affect Archaea’s operations; (j) decline in public acceptance and
support of renewable energy development and projects; (k) demand
for renewable energy not being sustained; (l) impacts of climate
change, changing weather patterns and conditions, and natural
disasters; (m) the ability to secure necessary governmental and
regulatory approvals; (n) the Company’s expansion into new business
lines; and (o) other risks and uncertainties indicated in the
Registration Statement on Form S-1 (File No. 333-260094),
originally filed by Archaea with the SEC on October 6, 2021, as
subsequently amended on October 18, 2021 and declared effective by
the SEC on October 21, 2021, including those under “Risk Factors”
therein, and other documents filed or to be filed with the SEC by
Archaea.
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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ARCHAEA CONTACT Investors and
Media Megan Light mlight@archaea.energy 346-439-7589
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