UGI Utilities, Archaea Energy sign first agreement to bring renewable natural gas into UGI system

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UGI Utilities, Inc., a subsidiary of UGI Corporation based in Denver, Pa., announced last week that it has signed an agreement with Archaea Energy, LLC of Canonsburg, Pa., to accept delivery of renewable natural gas (RNG) into its distribution system.

This is the first RNG supply interconnect agreement UGI Utilities has signed.

“For over 135 years, UGI Utilities has focused on providing safe, reliable service to its customers and to the many communities it serves,” Hans Bell, president of UGI Utilities, said. “Partnering with Archaea to bring these RNG volumes into our distribution system provides us with the opportunity to continue growing in an environmentally responsible way, and enhances and expands our commitment to offer energy solutions that are innovative, efficient and beneficial to the environment.”

The RNG will be delivered from the Keystone Landfill in Dunmore, Pa., and will be processed and conditioned to meet UGI Utilities’ gas quality requirements. The RNG supply will be injected into UGI Utilities’ high-pressure natural gas pipeline serving its distribution system in Lackawanna, Pa.

The project is scheduled to become operational in September 2021. When fully operational, the UGI Utilities system will be designed to take up to 16,000 mcf (thousand cubic feet) per day of RNG supply at a rate of 780 mcf per hour. It is expected to be the largest RNG supply point in the United States once complete.

Additionally, moving the Keystone Landfill RNG supply into the UGI Utilities system secures a local source of gas for UGI customers and reduces the release of naturally occurring methane from the landfill. UGI Utilities’ acceptance of the RNG will reduce carbon dioxide emissions by up to 314,000 metric tons per year – equal to removing 67,000 passenger vehicles over the course of a calendar year.

“Archaea is proud to partner with UGI Utilities to help bring renewable energy to eastern Pennsylvania,” Archaea CEO Nick Stork said. “UGI Utilities and Archaea share a common culture of safety, reliability and commitment to decarbonization of energy resources. Pennsylvania is our home, and we are thrilled to work with another ‘hometown’ company like UGI Utilities.”