UK-headed global energy major bp plc has announced that it via its division bp America has completed its multi-billion US$ acquisition of Archaea Energy Inc., a leading producer of renewable natural gas (RNG) in the United States (US).
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According to a statement, the US$4.1 billion deal marks a milestone in the growth of bp’s strategic bioenergy business.
We see an enormous opportunity to grow our bioenergy business by bringing Archaea fully into bp. The talent, expertise, and passion of their team have let them achieve incredible growth so far, and we’re excited to support the next chapter in line with our strategy, said Dave Lawler, Chairman and President of bp America.
Bioenergy is a strategic growth engine
In October, bp announced it had agreed for bp America to acquire Archaea, subject to regulatory and Archaea shareholder approval.
Having received those approvals and with the transaction completed on December 28, 2022, 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.
Bioenergy is one of five strategic transition growth engines that bp intends to grow rapidly through this decade.
bp expects investment into its transition growth businesses to reach more than 40 percent of its total annual capital expenditure by 2025, aiming to grow this to around 50 percent by 2030.
With the close of the agreement, Archaea common shares will cease to be listed on the NYSE.
