bp has finalised its acquisition of Archaea Energy Inc., a leading provider of renewable natural gas (RNG), marking a significant step forward in the expansion of bp’s strategic bioenergy sector.
“We see enormous opportunity to grow our bioenergy business by bringing Archaea fully into bp,” said Dave Lawler, chairman and president bp America. “The talent, expertise and passion of their team has let them achieve incredible growth so far, and we’re excited to support the next chapter in line with our strategy.”
bp announced in October that it has agreed to buy Archaea, subject to regulatory and Archaea shareholder approval. With those approvals in hand and the transaction completed, Archaea strengthens bp’s presence in the US biogas industry, enhancing its ability to support customers’ decarbonization goals and moving the company closer to its goal of reducing the average lifecycle carbon intensity of the energy products it sells.
Bioenergy is one of five key transition growth engines that BP plans to quickly expand over the next decade. BP forecasts investment in transition growth companies to account for more than 40% of total annual capital expenditure by 2025, with a goal of increasing this to roughly 50% by 2030.
Renewable natural gas (RNG), also known as biomethane, is gas from organic matter which has been upgraded to sufficient quality to enter the gas network. Often considered a substitute or transition fuel in the journey from fossil fuel, RNG is considered carbon neutral as it is derived from organic sources, though it isn’t carbon zero. Renewable Natural Gas can be used interchangeably with fossil-fuel-based natural gas, including as a transport fuel.
