Archaea Holdings signs 21-year RNG supply deal with NW Natural
In the United States (US), Archaea Energy Inc. (Archaea), a leading renewable natural gas (RNG) company, has announced 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 Company. NW Natural provides natural gas service to approximately 2.5 million people in Oregon (OR) and Southwest Washington (WA).
Under the terms of 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 US landfills and displacement of conventional natural gas.
We are pleased to partner with NW Natural and look forward to our multi-decade business relationship. This agreement, our first with a US 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, said Nick Stork, Co-Founder, and CEO of Archaea.
Third RNG contract
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 percent of NW Natural’s annual sales volume in Oregon.
We’re excited to work with the experienced leadership at Archaea to help lower emissions on behalf of our customers. 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, said David H. Anderson, President, and CEO of NW Natural.