Archaea Inks 20-Year Renewable Natural Gas Agreement with Énergir

 

Archaea Energy Inc., an industry-leading renewable natural gas (RNG) company, on Monday entered a contract to deliver more than 2 MMBtu per year of RNG to Énergir LP. Subject to regulatory approval, deliveries are expected to commence in October 2023.

This is the second long-term commercial agreement between Archaea and Énergir, the largest natural gas distribution company in Quebec.

Under the agreement, which is subject to regulatory approval by the Quebec Régie de l'énergie, Énergir expects to purchase 2.15 million gigajoules (approximately 2.04 MMBtu) of RNG generated by Archaea annually from its portfolio of RNG production facilities for a fixed fee for a period of 20 years.

The RNG produced by Archaea for this expanded long-term partnership is expected to be a key contributor towards Énergir’s interim target of delivering 2% of its total annual natural gas volumes using RNG by 2023, with a longer-term target of 5% by 2025.

“We are excited to extend and expand our multi-decade partnership with Énergir as a result of this second long-term agreement,” Brian McCarthy, Archaea’s co-founder and CFO, said. “The team at Énergir has been tremendous to work with, and from the top down the organization is focused on executing on its mission of decarbonization. We continue to see natural gas utilities, such as Énergir, as first-movers in the voluntary RNG market who are looking to RNG as a primary method of decarbonization in response to regulatory and existential mandates.”

 

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