Archaea Energy Marketing LLC signed a sale and purchase agreement to supply UGI Utilities Inc. with 331,785 MMBtu of renewable natural gas (RNG), a press release announced on July 27.

A subsidiary of RNG producer Archaea Energy Inc., Archaea Energy Marketing will provide the gas on an annual basis beginning on July 1 of this year for five years from its Assai RNG facility in Pennsylvania. Deliveries will be made for a fixed fee under the agreement, which was recently signed and approved.

Pennsylvania-based UGI Utilities is the natural gas and electric utility subsidiary of energy product and service distributer UGI Corp., which specializes in supplying natural gas, liquified petroleum gas, electricity and renewables.

According to Brian McCarthy, co-founder, chief investment officer and interim CFO of Archaea, the partnership with UGI is the company's second agreement with a U.S. utility, the first being with NW Natural Holdings, announced in December 2021.

"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,” he continued in the release.

Both companies are excited to expand their sustainable energy portfolios through the partnership, UGI executive vice president of natural gas, global engineering, construction and procurement Robert F. Beard commented in the release.

"The commencement of this pilot program is a significant step forward as we continue to develop sustainable, environmentally responsible energy solutions for our customers,” he added. “UGI remains committed to developing renewable energy sources for the communities we serve.”

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