Archaea Announces Expansion of Commercial Partnership with Énergir via New 20-Year Renewable Natural Gas Agreement
15 August 2022 - 2:30PM
Business Wire
Contract to deliver more than 2 million MMBtu
per year of RNG with deliveries expected to commence in October
2023
Archaea Energy Inc. (“Archaea,” “the Company,” or “we”) (NYSE:
LFG), an industry-leading renewable natural gas (“RNG”) company,
today announced that it is expanding its commercial partnership
with Énergir L.P. (“Énergir”) by entering into a new long-term RNG
purchase and sale agreement. This is the second long-term
commercial agreement between Archaea and Énergir, the largest
natural gas distribution company in Quebec.
Under the agreement, which is subject to regulatory approval by
the Quebec Régie de l'énergie, Énergir expects to purchase 2.15
million gigajoules (approximately 2.04 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. Subject to
regulatory approval, the agreement is expected to commence in
October 2023. The RNG produced by Archaea for this expanded
long-term partnership is expected to be a key contributor towards
Énergir’s interim target of delivering 2% of its total annual
natural gas volumes using RNG by 2023, with a longer-term target of
5% by 2025.
“We are excited to extend and expand our multi-decade
partnership with Énergir as a result of this second long-term
agreement,” said Brian McCarthy, Archaea’s Co-founder and Chief
Financial Officer. “The team at Énergir has been tremendous to work
with, and from the top down the organization is focused on
executing on its mission of decarbonization. We continue to see
natural gas utilities, such as Énergir, as first-movers in the
voluntary RNG market who are looking to RNG as a primary method of
decarbonization in response to regulatory and existential mandates.
We are proud to be one of the few RNG producers capable of offering
tailored long-term, fixed-price agreements that can scale with the
growing demands of our customers, thereby giving our RNG can a
growing impact as a sustainable, multi-decade decarbonization
solution. This growth will be enabled by our extensive,
high-quality RNG development backlog, including projects related to
our Lightning Renewables joint venture with Republic Services and
the acquisition of INGENCO, which successfully closed in July
2022.”
“We are thrilled to pursue our relationship with Archaea, a
proven RNG producer with an innovative-driven approach,” said
Renault-François Lortie, Vice President, Customers and Gas Supply
at Energir. “If this agreement is approved by our regulatory
authority, it will represent an important addition to our RNG
supplies target. It will inevitably strengthen the development of
the RNG industry in Quebec, as it will allow a greater number of
customers who are concerned about reducing their carbon footprint
to benefit from renewable energy at a competitive cost. Once
materialized, these additional volumes in our network will help
meet our goal of distributing 5% RNG by 2025 and at least 10% by
2030 and therefore, contribute greatly the reduction of Quebec’s
GHG emissions.”
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 release contains certain statements that may include
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. 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. 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,
general economic conditions and the possibility that Archaea may be
adversely affected by general economic, business and/or competitive
factors; and other risks and uncertainties indicated in Archaea’s
Annual Report on Form 10-K for the year ended December 31, 2021 and
Archaea’s Quarterly Report on Form 10-Q for the quarter ended March
31, 2022, including those under “Risk Factors” therein, and other
documents filed or to be filed by Archaea with the Securities and
Exchange Commission.
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 Megan Light mlight@archaea.energy 346-439-7589
Blake Schreiber bschreiber@archaea.energy 346-440-1627
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