Pennsylvania-based UGI Utilities, a natural gas and electric utility, recently entered into a five-year renewable natural gas (RNG) purchase and sale agreement with Archaea Energy Marketing.
UGI Utilities annually will purchase 331,785 Million British thermal units of RNG that Archaea generates for a fixed fee. Deliveries began on July 1.
“The commencement of this pilot program is a significant step forward as we continue to develop sustainable, environmentally responsible energy solutions for our customers,” Robert F. Beard, UGI executive vice president of natural gas, global engineering, construction, and procurement, said. “UGI remains committed to developing renewable energy sources for the communities we serve.”
“We also believe this partnership is the first step toward additional, longer-term commercial offtake opportunities with Pennsylvania utilities that can utilize our RNG to reduce their environmental footprints and enhance their sustainability,” said Brian McCarthy, Archaea co-founder, chief investment officer, and interim CFO.
The agreement has received the necessary regulatory approvals.
UGI Utilities is a wholly-owned subsidiary of UGI Corp., a distributor and marketer of energy products and services.
Archaea Energy Marketing is a wholly-owned subsidiary of Texas-based Archaea Energy, an RNG producer. Archaea partners with landfill and farm owners to transform potential sources of carbon emissions into RNG.