Deliveries begin in 2022 for Northwest
Natural’s Oregon customers
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.
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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.
Additional information is available at
www.archaeaenergy.com.
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.
Additional information is available at www.nwnatural.com.
Forward Looking Statements
This press release contains certain statements that may include
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended (the “Securities Act”), and
Section 21E of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). Statements that do not relate strictly to
historical or current facts are forward-looking and usually
identified by the use of words such as “anticipate,” “estimate,”
“could,” “would,” “should,” “will,” “may,” “forecast,”
“approximate,” “expect,” “project,” “intend,” “plan,” “believe” and
other similar words. Forward-looking statements may relate to
expectations for future financial performance, business strategies
or expectations for Archaea’s business. Specifically,
forward-looking statements may include statements concerning market
conditions and trends, earnings, performance, strategies, prospects
and other aspects of Archaea’s business. Forward looking statements
are based on current expectations, estimates, projections, targets,
opinions and/or beliefs of Archaea, and such statements involve
known and unknown risks, uncertainties and other factors.
The risks and uncertainties that could cause those actual
results to differ materially from those expressed or implied by
these forward looking statements include, but are not limited to:
(a) the ability to recognize the anticipated benefits of the
business combinations and any transactions contemplated thereby,
which may be affected by, among other things, competition, the
ability of Archaea to grow and manage growth profitably and retain
its management and key employees; (b) the possibility that Archaea
may be adversely affected by other economic, business and/or
competitive factors; (c) Archaea’s ability to develop and operate
new projects; (d) the reduction or elimination of government
economic incentives to the renewable energy market; (e) delays in
acquisition, financing, construction and development of new
projects; (f) the length of development cycles for new projects,
including the design and construction processes for Archaea’s
projects; (g) Archaea’s ability to identify suitable locations for
new projects; (h) Archaea’s dependence on landfill operators; (i)
existing regulations and changes to regulations and policies that
affect Archaea’s operations; (j) decline in public acceptance and
support of renewable energy development and projects; (k) demand
for renewable energy not being sustained; (l) impacts of climate
change, changing weather patterns and conditions, and natural
disasters; (m) the ability to secure necessary governmental and
regulatory approvals; (n) the Company’s expansion into new business
lines; and (o) other risks and uncertainties indicated in Archaea’s
most recently filed registration statement, including those under
“Risk Factors” therein, and other documents filed or to be filed
with the SEC by Archaea.
Accordingly, forward-looking statements should not be relied
upon as representing Archaea’s views as of any subsequent date.
Archaea does not undertake any obligation to update forward-looking
statements to reflect events or circumstances after the date they
were made, whether as a result of new information, future events or
otherwise, except as may be required under applicable securities
laws.
This report, and other presentations made by NW Natural from
time to time, may contain forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995. Statements that do not relate strictly to historical or
current facts are forward-looking and usually identified by the use
of words such as “anticipate,” “assumes,” “estimate,” “could,”
“would,” “should,” “will,” “may,” “forecast,” “approximate,”
“expect,” “project,” “intend,” “plan,” “seek,” “believe” and other
similar words and references to future periods. Examples of
forward-looking statements include, but are not limited to,
statements regarding the following: plans, objectives, assumptions,
estimates, expectations, timing, goals, strategies, commitments,
future events, investments, renewable natural gas, likelihood and
success associated with any transaction, methane emissions, carbon
neutrality, compliance with SB 98 the likelihood and success
associated with any transaction, utility system and infrastructure
investments, decarbonization and the role of natural gas and the
gas delivery system, including decarbonization goals and timelines,
use of renewable sources, renewable natural gas purchases, projects
or investments and timing, magnitude and completion thereof,
strategic goals and visions, operating plans of third parties and
their ability to achieve them, timing, outcome, or effects of
regulatory proceedings or mechanisms or approvals, regulatory
prudence reviews, effects of legislation or changes in laws or
regulations, and other statements that are other than statements of
historical facts.
Forward-looking statements are based on current expectations and
assumptions regarding its business, the economy and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict. Actual
results may differ materially from those contemplated by the
forward-looking statements. You are therefore cautioned against
relying on any of these forward-looking statements. They are
neither statements of historical fact nor guarantees or assurances
of future operational, economic or financial performance. Important
factors that could cause actual results to differ materially from
those in the forward-looking statements are discussed by reference
to the factors described in Part I, Item 1A "Risk Factors", and
Part II, Item 7 and Item 7A "Management's Discussion and Analysis
of Financial Condition and Results of Operations" and "Quantitative
and Qualitative Disclosure about Market Risk" in the most recent
Annual Report on Form 10-K and in Part I, Items 2 and 3
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" and "Quantitative and Qualitative
Disclosures About Market Risk", and Part II, Item 1A, "Risk
Factors", in the quarterly reports filed thereafter.
All forward-looking statements made in this report and all
subsequent forward-looking statements, whether written or oral and
whether made by or on behalf of NW Natural, are expressly qualified
by these cautionary statements. Any forward-looking statement
speaks only as of the date on which such statement is made, and NW
Natural undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by law.
New factors emerge from time to time and it is not possible to
predict all such factors, nor can it assess the impact of each such
factor or the extent to which any factor, or combination of
factors, may cause results to differ materially from those
contained in any forward-looking statements.
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Archaea Contacts
Investors Megan Light
mlight@archaea.energy
Media Katarina Matic
Kmatic@montiethco.com 917-853-1105
NW Natural Contacts
Investors Nikki Sparley
nikki.sparley@nwnatural.com 503-721-2530
Media Dave Santen
media@nwnatural.com 503-818-9845 pager
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