British integrated oil and gas giant bp completes £2.7 billion purchase of US renewable energy firm Archaea

0
154

bp has this week completed its purchase of Archaea Energy Inc., a leading provider of renewable natural gas, marking a milestone in the growth of bp’s strategic bioenergy business.

bp is a British integrated oil and gas company with operations in more than 70 countries around the world with upstream operations responsible for the production of between 2 and 3 million barrel-of-oil equivalents per day.

However, the company say bioenergy is one of five strategic transition growth engines they intend to grow rapidly through this decade.

Dave Lawler, Chairman and President of bp America said:

“We see enormous opportunity to grow our bioenergy business by bringing Archaea fully into bp.

“The talent, expertise and passion of their team has let them achieve incredible growth so far, and we’re excited to support the next chapter in line with our strategy.”

CEO of Archaea Energy, Nick Stork added:

“bp is a world-class partner with an operational history in the RNG value chain that is fully aligned with ours and our partners’, and I look forward to our hard-working team joining the bp organisation to help achieve their bioenergy goals.”

In October, bp announced it had agreed to acquire Archaea, subject to regulatory and Archaea shareholder approval. Having received those approvals and with the transaction complete, Archaea expands bp’s presence in the US biogas industry, enhancing its ability to support customers’ decarbonization goals and progressing its aim to reduce the average lifecycle carbon intensity of the energy products it sells.

bp says it expects investment into its transition growth businesses to reach more than 40% of its total annual capital expenditure by 2025, aiming to grow this to around 50% by 2030. 

With the close of the agreement, Archaea common shares will cease to be listed on the NYSE.

Photo credit: bp 

LEAVE A REPLY

Please enter your comment!
Please enter your name here