Archaea signs renewable gas agreement

A subsidiary of Archaea Energy has signed a long-term purchase and sale agreement for renewable natural gas with Northwest Natural Gas Company.

Under terms of the agreement, NW Natural will purchase the environmental attributes generated by Archaea for up to one million MMBtu of RNG annually from its portfolio of RNG production facilities for a fixed fee for a period of 21 years.

The agreement will commence in early 2022, with the full annual quantity beginning in 2025. The RNG produced by Archaea for this long-term partnership is expected to have a positive impact through avoided methane emissions at U.S. landfills and displacement of conventional natural gas, Archaea said.

“We are pleased to partner with NW Natural and look forward to our multi-decade business relationship,” said Nick Stork, Archaea co-founder and CEO. “This agreement, our first with a U.S. utility, is a testament to the strength of our commercial offerings and highlights our ability to help utilities provide lower carbon options to their customers and achieve their sustainability goals.”

“We’re excited to work with the experienced leadership at Archaea to help lower emissions on behalf of our customers,” said David H. Anderson, NW Natural president and CEO. “This agreement is another meaningful step on the path to achieving our long-term carbon neutrality goal, while also helping communities close the loop on waste.”

This marks the third RNG contract for NW Natural under the landmark Oregon Senate Bill 98, which supports renewable energy procurement and investment by natural gas utilities. With the addition of this most recent contract, NW Natural has signed agreements with options to purchase or develop RNG totaling about 3% of NW Natural’s annual sales volume in Oregon.

Archaea Energy is one of the largest RNG producers in the U.S., with an industry leading platform and expertise in developing, constructing, and operating RNG facilities to capture waste emissions and convert them into low carbon fuel.

Archaea partners with landfill and farm owners to help them transform potential sources of emissions into RNG, transforming their facilities into renewable energy centers.

NW Natural is a local distribution company that currently provides natural gas service to approximately 2.5 million people in more than 140 communities through more than 780,000 meters in Oregon and Southwest Washington.