UGI, Archaea form joint venture to develop RNG facility
UGI Energy Services has struck an agreement with Archaea Energy to form a new joint venture, Aurum Renewables.
The joint venture will develop a renewable natural gas (RNG) project at the Commonwealth Environmental Systems landfill in Hegins, Pa. Archaea Holdings, a subsidiary of Archaea, holds a 60 percent ownership stake while UGIES, a subsidiary of UGI, holds a 40 percent ownership interest.
“This project represents a meaningful step forward for UGI,” Robert Beard, chief operations officer at UGI, 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. Additionally, the investment in Aurum supports the Company’s existing greenhouse gas emission reduction plans that are highlighted in our latest environmental, social, and governance report.”
For this project, UGIES will contribute its existing 11-megawatt landfill gas-to-electricity facility. Aurum will then 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 will lead the development, engineering, construction, and operation of the new RNG facility, while UGIES will handle the marketing of the RNG produced by the facility.
“We are very excited to continue to expand our partnership with UGI, which, as a result of this joint venture, now spans across the full RNG value chain of production, transportation, and commercial offtake,” Brian McCarthy, Archaea’s chief financial and commercial officer, said. “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.”
UGI Corp., based in Wyomissing, Pa., operates natural gas and electric utilities in Pennsylvania, natural gas utilities in West Virginia, distributes LPG both domestically and internationally, manages midstream energy assets in Pennsylvania, Ohio, and West Virginia and electric generation assets in Pennsylvania, and engages in energy marketing in the United States and internationally.
