In a move to expand and accelerate the growth of its strategic bioenergy business, bp announced that it has agreed to purchase Archaea Energy Inc., a producer of renewable natural gas (RNG) in the United States. This acquisition, which is subject to regulatory approval, will be 3.3 billion dollars in cash, and also 800 dollars of net debt.
Bioenergy is one of the five strategic transition growth engines that intends to grow rapidly through the decade. bp is expecting investment into its transition growth business to reach more than 40 percent of its total annual capital expenditure by 2025, which aims to grow by around 50 percent by 2030.
bp’s acquisition of Archaea will expand the presence bp in the US biogas industry, enhancing its ability to support the decarbonisation goals of its customers and also progress its aim to decrease the average carbon intensity of the energy products it sells. bp also aims to decrease that carbon intensity by a net zero by 2050.
Bernard Looney, chief executive of bpBP, said that Archaea is a fast-growing business, and it will add distinctive value through its trading business and customer reach. It will also accelerate their bioenergy growth engine, creating a real leader in the biogas industry.
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