UGI Launches Joint Venture with Archaea Energy to Develop Renewable Natural Gas Project in Pennsylvania
February 13 2023 - 4:15PM
Business Wire
UGI Energy Services, LLC (“UGIES”), a subsidiary of UGI
Corporation (NYSE: UGI), and Archaea Energy Inc. (“Archaea”), a
subsidiary of bp (NYSE: BP) 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 landfill in Hegins, Pennsylvania. Archaea
Holdings, LLC, a subsidiary of Archaea, holds a 60% ownership
interest, and a subsidiary of UGIES holds a 40% ownership interest
in the joint venture.
Under the joint venture, UGIES will contribute its existing 11
megawatt 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, 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.
“This project represents a meaningful step forward for UGI,”
said Robert F. Beard, Chief Operations Officer, 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,” Beard concluded.
“We are very excited to continue to expand our partnership with
UGI, which, as a result of this joint venture, now spans across the
full RNG value chain of production, transportation, and commercial
offtake,” said Brian McCarthy, Archaea's Chief Financial and
Commercial Officer. “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.”
About UGI Corporation
UGI Corporation is a distributor and marketer of energy products
and services. Through subsidiaries, UGI operates natural gas and
electric utilities in Pennsylvania, natural gas utilities in West
Virginia, distributes LPG both domestically (through AmeriGas) and
internationally (through UGI International), manages midstream
energy assets in Pennsylvania, Ohio, and West Virginia and electric
generation assets in Pennsylvania, and engages in energy marketing,
including renewable natural gas, in the Mid-Atlantic region of the
United States and California, and internationally in France,
Belgium, and the Netherlands.
Comprehensive information about UGI Corporation is available on
the Internet at https://www.ugicorp.com.
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