Investment creates nation's largest portfolio of landfill
gas-to-RNG development projects
PHOENIX and HOUSTON, May 5,
2022 /PRNewswire/ -- Republic Services, Inc. (NYSE:
RSG), a leader in the environmental services industry, and Archaea
Energy, Inc. ("Archaea") (NYSE: LFG), the industry-leading
renewable natural gas ("RNG") producer in the U.S., today announced
a joint venture to develop 39 RNG projects across the country. The
partnership, the country's largest RNG portfolio build-out to date,
will convert landfill gas into pipeline-quality RNG that can be
used for a variety of applications to displace gas from fossil
fuels. The initiative is expected to generate substantial progress
towards Republic's long-term sustainability goal to beneficially
reuse 50% more biogas by 2030.
"Sustainability is a platform for growth at Republic, and our
continued investment in landfill gas-to-energy projects delivers
meaningful environmental and economic benefits to our
stakeholders," said Jon Vander Ark, Republic Services president and
chief executive officer. "Market demand for renewable natural gas
to reduce greenhouse gas emissions is growing significantly, and
providing additional sources of RNG furthers Republic's ambitious
sustainability goals, while also helping customers and communities
meet their own climate action goals."
Archaea Energy will develop, engineer, construct and operate the
RNG facilities, which will be located at Republic Services'
landfills in 19 states. Construction is slated to begin on projects
in late 2022, with completion and commissioning of the projects
planned through 2027. When fully operational, the 39 projects are
expected to generate more than 12.5 million MMBtu of RNG annually.
The joint venture has signed a gas sale agreement with Republic to
provide for the long-term ability to process landfill gas and sell
RNG and related environmental attributes.
Archaea Energy will contribute approximately $800 million, and Republic will contribute
approximately $300 million for total
investment of approximately $1.1
billion into the joint venture over the course of five
years.
Archaea is one of the largest RNG producers in the U.S., with an
industry-leading RNG platform primarily focused on capturing and
converting waste emissions from landfills into low-carbon RNG and
electricity. Archaea develops, designs, constructs and operates RNG
facilities utilizing an innovative, cost-efficient manufacturing
approach to project development which is supported by a commercial
strategy focused on long-term, fixed-price contracts.
"We are honored to have been selected as Republic's partner for
this monumental joint venture, which is the beginning of a
renewable energy platform that will become a critical component of
Archaea's mission to achieve best-in-class environmental
stewardship and greenhouse gas emissions reductions," said
Nick Stork, Archaea's Co-Founder and
Chief Executive Officer. "We are focused on long-term,
value-oriented capital investments that make a meaningful
sustainability impact for future generations. We could not be more
aligned in this vision with our partners at Republic, and we look
forward to seeing the collective benefit this partnership will
deliver to our respective shareholders, partners, and
communities."
As a low-carbon fuel, RNG displaces a meaningful amount of
greenhouse gas emissions and is increasingly being recognized as a
near-term climate strategy to lower the carbon footprint of
existing energy assets. Decarbonization efforts are expected to
propel demand for RNG, with landfill gas providing greater scale
and predictability than other sources for reliable renewable energy
production.
The strategic partnership with Archaea Energy is expected to
expand Republic Services' renewable energy portfolio to more than
100 projects. It builds on a growing slate of environmental
commitments by Republic, including fleet electrification and
investments in plastics circularity, to create a more sustainable
world.
Moelis & Company LLC is serving as exclusive financial
advisor to Republic Services, and Davis
Polk & Wardwell LLP and Katz
Barron are serving as Republic Services' legal counsel.
About Republic Services
Republic Services, Inc. is a leader in the U.S. environmental
services industry. Through its subsidiaries, the Company provides
superior service offerings while partnering with customers to
create a more sustainable world. For more information, visit
RepublicServices.com, or follow us at
Facebook.com/RepublicServices, @RepublicService on Twitter or
Republic Services on LinkedIn.
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.
Forward Looking Statements
This press release contains certain forward-looking information
about Republic Services and Archaea that is intended to be covered
by the safe harbor for "forward-looking statements" provided by the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are statements that are not historical facts. Words such
as "expect," "will," "may," "anticipate," "plan," "can," "could,"
and similar expressions are intended to identify forward-looking
statements. These statements include information about Republic
Services' and Archaea's plans, strategies and prospects.
Forward-looking statements are not guarantees of performance. These
statements are based upon the current beliefs and expectations of
Republic Services' management and Archaea's management and are
subject to risks and uncertainties that could cause actual results
to differ materially from those expressed in, or implied or
projected by, the forward-looking information and statements. Among
the factors that could cause actual results to differ materially
from the expectations expressed in the forward-looking statements
are the costs and the timing of commencement and completion of the
RNG projects, the rate at which the joint venture can convert
landfill gas into RNG, the impact of economic, financial and social
conditions in the United States
and Republic's ability to realize its sustainability commitments
and goals and in their contemplated timeframes. More information on
factors that could cause actual results or events to differ
materially from those anticipated is included from time to time in
Republic Services' and Archaea's reports filed with the Securities
and Exchange Commission. Republic Services and Archaea undertake no
obligation to update publicly any forward-looking statements
whether as a result of new information, future events or otherwise,
except as required by law.
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SOURCE Republic Services, Inc.