Archaea pens five-year RNG supply deal with UGI

UGI Utilities, a subsidiary of energy distributor and marketer UGI Corp, will purchase renewable natural gas (RNG) from leading supplier Archaea Energy under a five-year purchase and sales agreement announced by Archaea July 27.

UGI began taking RNG supplies under this agreement on July 1. The contract provides for more than 300,000mn Btu of RNG/year to be supplied for a fixed fee.

RNG sourcing is from Archaea's landfill site in Dunmore, Pennsylvania, which has an "inlet" capacity of 22,500 ft/minute, enough to deliver more than 4mn Btu of RNG at projected production flows.

Archaea previously signed a sales and purchase agreement for around 7.6mn MMBTu of RNG with Fortis subsidiary FortisBC.

Brian McCarthy, Archaea's co-founder, chief investment officer and interim chief financial officer, said: “This is our second term agreement signed with a US utility, and we are excited to be expanding our partnerships with entities across new geographies that are supportive of RNG and its decarbonization impacts.

"We also believe this partnership is the first step toward additional, longer-term commercial offtake opportunities with Pennsylvania utilities that can utilize our RNG to reduce their environmental footprints and enhance their sustainability.”

Robert Beard, UGI executive vice president for natural gas, global engineering, construction and procurement, added: "The commencement of this pilot program is a significant step forward as we continue to develop sustainable, environmentally responsible energy solutions for our customers. UGI remains committed to developing renewable energy sources for the communities we serve.”