UGI Launches Joint Venture with Archaea Energy to Develop Renewable Natural Gas Project in Pennsylvania
UGI Energy Services, LLC (“UGIES”), a subsidiary of UGI Corporation (NYSE: UGI), and Archaea Energy Inc. (“Archaea”), a subsidiary of bp (NYSE: BP) announced today that they recently entered into a joint venture, Aurum Renewables, LLC (“Aurum”), to develop a renewable natural gas (“RNG”) project at the Commonwealth Environmental Systems landfill in Hegins, Pennsylvania. Archaea Holdings, LLC, a subsidiary of Archaea, holds a 60% ownership interest, and a subsidiary of UGIES holds a 40% ownership interest in the joint venture.
Under the joint venture, UGIES will contribute its existing 11 megawatt landfill gas-to-electricity facility. Through the joint venture, Aurum will develop a new RNG facility where the landfill gas will be processed to become RNG. Once complete, the project is expected to have the capacity to produce approximately 5,000 MMBtu per day of pipeline-quality RNG. Archaea, an industry-leading RNG company, will lead the development, engineering, construction, and operation of the new RNG facility, and UGIES will take a lead role in marketing the RNG produced by the facility.