UGI, Archaea Energy Partner to Develop Renewable Natural Gas Project in Pennsylvania

(P&GJ) — UGI Energy Services LLC and Archaea Energy Inc., a subsidiary of bp, have entered into a joint venture, Aurum Renewables LLC, to develop a renewable natural gas (RNG) project at the Commonwealth Environmental Systems landfill in Hegins, Pennsylvania.

Archaea Holdings, LLC, a subsidiary of Archaea, holds a 60% ownership interest, and a subsidiary of UGIES holds a 40% ownership interest in the joint venture.

“This project represents a meaningful step forward for UGI,” Robert Beard, UGI’s COO, said. “Demand for RNG is growing, as more individuals and businesses look for an energy source that is safe, cost effective and environmentally friendly. UGI’s investment in Aurum is another example of our commitment to our strategy of making significant investments in renewable energy projects.”

Under the joint venture, UGIES will contribute its existing 11-megawatt landfill gas-to-electricity facility. Through the joint venture, Aurum will develop a new RNG facility where the landfill gas will be processed to become RNG. Once complete, the project is expected to have the capacity to produce approximately 5,000 MMBtu per day of pipeline-quality RNG.

Archaea, an industry-leading RNG company, will lead the development, engineering, construction, and operation of the new RNG facility, and UGIES will take a lead role in marketing the RNG produced by the facility.

“This new RNG facility will be one of the largest in the Archaea portfolio and is expected to bring significant environmental and social benefits to southeast Pennsylvania communities. This new facility will also bring global benefits by reducing greenhouse gas emissions and providing a domestically-produced, affordable, low-carbon source of energy,” Brian McCarthy, Archaea's chief financial and commercial officer, said.

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