Archaea Energy, Aria Energy Combine to Form RNG Development, Advancement Company
Archaea Energy, a renewable natural gas (RNG) development and advancement company, announced its business combination with Aria Energy led by Rice Acquisition Corporation. The business combination with Archaea and Aria, one of the largest companies in the North American landfill gas (LFG) sector, will create a significant U.S. RNG platform, the companies said.
The combined company, which will be called Archaea Energy, will be dedicated to reducing carbon emissions through landfill gas conversion, CO2 sequestration, and green hydrogen. It will be able to produce and deliver pipeline-quality RNG through the existing natural gas infrastructure.
“Archaea was founded to create green energy from methane produced through anaerobic digestion, a greenhouse gas 25 times more harmful than carbon dioxide,” said Nicholas Stork, Archaea Co-Founder and CEO. “Our mission is to reduce the carbon intensity (CI) of vented and flared methane and empower corporations, universities, municipalities and utilities to meet their sustainability goals.”
RNG is a green bridge to sustainability and long-term decarbonization that enables organizations to greenify their existing natural gas infrastructure. It is the most sustainable solution for capturing carbon emissions generated by food waste, wastewater, agriculture waste and landfill gas. RNG is becoming part of the North American and worldwide clean energy supply chain as an increasing number of entities look to secure a green energy future.
Archaea currently has a higher indicated demand through its existing partnerships than the entire RNG production in the market today.
“Archaea’s expanding customer base, the growing demand for RNG and our team’s experience and ability to produce and deliver pipeline-quality RNG through the existing natural gas infrastructure will drive our growth,” said Brian McCarthy, Archaea Energy Co-Founder and CFO. “The already demonstrated institutional investor confidence in our vision for Archaea Energy will also enable us to deliver a low-risk development program with two-thirds of our RNG production under long-term, fixed-price arrangements with investment-grade buyers.”
Archaea is led by a team of landfill owners and RNG technologists. To continue to lower the carbon intensity of its RNG, Archaea is developing CO2 sequestration and green hydrogen projects using its RNG as a feedstock resulting in negative CI scores.
The anticipated valuation of the business combination of RAC, Archaea and Aria is $1.15 billion at close, which is expected in the third quarter of 2021. Archaea Energy’s new executive team will be comprised of leaders from Aria and Archaea and the combined Company plans to remain listed on the NYSE under the ticker symbol “LFG.”
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