In the United States (US), UGI Energy Services, LLC (UGIES), a subsidiary of UGI Corporation, and Archaea Energy Inc. (Archaea), a subsidiary of bp plc have announced today that they recently entered into a joint venture, Aurum Renewables, LLC (Aurum), to develop a renewable natural gas (RNG) project at the Commonwealth Environmental Systems (CES) landfill in Hegins, Pennsylvania (PA).
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Under the joint venture, UGIES will contribute its existing 11 MW 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 Holdings, LLC, a subsidiary of Archaea, holds a 60 percent ownership interest, and a subsidiary of UGIES holds a 40 percent ownership interest in Aurum.
This project represents a meaningful step forward for UGI. 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, said Robert F. Beard, Chief Operations Officer, UGI.
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.
We are very excited to continue to expand our partnership with UGI, which, as a result of this joint venture, now spans the full RNG value chain of production, transportation, and commercial offtake. 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 said Brian McCarthy, Chief Financial and Commercial Officer of Archaea.
