BP completes purchase of Archaea Energy

BP on December 28 announced it had completed the purchase of NYSE-listed renewable natural gas (RNG) company Archaea Energy.

“We see enormous opportunity to grow our bioenergy business by bringing Archaea fully into BP,” said Dave Lawler, chairman and president BP America. “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.”

BP had in October agreed to acquire Houstan-based 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.

Bioenergy is one of five strategic transition growth engines that BP intends to grow rapidly through this decade, it said. BP 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. 

Archaea produced and sold 2.42mn mnBtu of RNG in the third quarter and 6mn mnBtu through the first nine months of this year. Comparable 2021 production figures have not been not provided by the company.

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