to help the oil major meet its goal of net-zero carbon intensity by the year 2050.
The $4.1 billion deal is expected to close by the end of the year, subject to regulatory and Archaea shareholder approval, according to BP. Archaea operates multiple landfill gas-to electric projects that use methane produced by landfills to produce gas, known in the industry as “renewable natural gas” or RNG.
BP’s CEO Bernard Looney said the acquisition will make the company a leader in the biogas sector while supporting net zero ambition.Gas happens: Houston company launches ambitious partnership to reclaim natural gas from landfills “And, importantly, we're doing this while remaining focused on the disciplined execution of our financial frame,” Looney said in a statement. “Investing with discipline into the energy transition, creating further value through integration – this is exactly what BP’s transformation into an integrated energy company is all about.”
RNG can be used in place of natural gas, which comes from fossil fuels. BP said in its latest energy outlook it expects the use of biogas to grow more than 25-fold from 2019 to 2050.