Archaea Energy Inc. (“Archaea”) (NYSE: LFG), an industry leading renewable natural gas (“RNG”) company, announced today that its subsidiary Archaea Holdings, LLC has entered into a long-term RNG purchase and sale agreement with Northwest Natural Gas Company (“NW Natural”), a subsidiary of NW Natural Holdings (NYSE: NWN). NW Natural provides natural gas service to approximately 2.5 million people in Oregon and Southwest Washington.
Under the agreement, NW Natural will purchase the environmental attributes generated by Archaea related to up to one million MMBtu of RNG annually from its portfolio of RNG production facilities for a fixed fee for a period of 21 years. The agreement will commence in early 2022, with the full annual quantity beginning in 2025. The RNG produced by Archaea for this long-term partnership is expected to have a positive impact through avoided methane emissions at U.S. landfills and displacement of conventional natural gas.
“We are pleased to partner with NW Natural and look forward to our multi-decade business relationship,” said Nick Stork, Archaea co-founder and CEO. “This agreement, our first with a U.S. utility, is a testament to the strength of our commercial offerings and highlights our ability to help utilities provide lower carbon options to their customers and achieve their sustainability goals.”
“We’re excited to work with the experienced leadership at Archaea to help lower emissions on behalf of our customers,” said David H. Anderson, NW Natural president and CEO. “This agreement is another meaningful step on the path to achieving our long-term carbon neutrality goal, while also helping communities close the loop on waste.”
This marks the third RNG contract for NW Natural under the landmark Oregon Senate Bill 98, which supports renewable energy procurement and investment by natural gas utilities. With the addition of this most recent contract, NW Natural has signed agreements with options to purchase or develop RNG totaling about 3% of NW Natural’s annual sales volume in Oregon.
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.
About NW Natural
NW Natural is a local distribution company that currently provides natural gas service to approximately 2.5 million people in more than 140 communities through more than 780,000 meters in Oregon and Southwest Washington with one of the most modern pipeline systems in the nation. NW Natural consistently leads the industry with high J.D. Power & Associates customer satisfaction scores. NW Natural, a part of Northwest Natural Holding Company, (NYSE: NWN) (NW Natural Holdings), is headquartered in Portland, Oregon, and has been doing business for more than 160 years. NW Holdings owns NW Natural, NW Natural Renewables Holdings, NW Natural Water Company (NW Natural Water), and other business interests. We have a longstanding commitment to safety, environmental stewardship, and taking care of our employees and communities, learn more in our latest ESG Report.
Source
Archaea Energy, press release, 2021-11-15.
Supplier
Archaea Energy Inc.
Northwest Natural Gas Company (NW Natural)
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