Home Impact producer Republic Services and Archaea Energy launch RNG joint venture

Republic Services and Archaea Energy launch RNG joint venture

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By Republic Services Inc. | May 09, 2022


Republic Services Inc., an environmental services industry leader, and Archaea Energy Inc., the leading producer of renewable natural gas (RNG) in the United States, announced on May 5 a joint venture to develop 39 RNG projects in across the country. The partnership, the nation’s largest RNG portfolio build to date, will convert landfill gas into pipeline-grade RNG that can be used for a variety of applications to replace gas from fossil fuels. The initiative is expected to drive substantial progress toward Republic’s long-term sustainability goal of beneficially reusing 50% more biogas by 2030.

“Sustainability is a growth platform for Republic, and our continued investment in landfill gas-to-energy projects delivers significant environmental and economic benefits to our stakeholders,” said Jon Vander Ark, President and CEO of Republic Services. “Market demand for renewable natural gas to reduce greenhouse gas emissions is growing significantly, and providing additional sources of RNG contributes to Republic’s ambitious sustainability goals, while helping customers and communities achieve their own climate action goals.

Archaea Energy will develop, design, construct and operate the RNG facilities, which will be located at Republic Services landfills in 19 states. Construction is expected to begin on the projects in late 2022, with project completion and commissioning expected through 2027. When fully operational, the 39 projects are expected to generate over 12.5 million MMBtu of RNG per year. The joint venture has signed a gas sales agreement with Republic to secure the long-term ability to process landfill gas and sell RNG and related environmental attributes.

Archaea Energy will contribute approximately $800 million, and Republic will contribute approximately $300 million for a total investment of approximately $1.1 billion in the joint venture over a five-year period.

Archaea is one of the largest producers of RNG in the United States, with a state-of-the-art RNG platform primarily focused on capturing and converting waste emissions from landfills into RNG and low-carbon electricity. Archaea develops, designs, builds and operates RNG facilities using an innovative and cost-effective manufacturing approach to project development, supported by a commercial strategy focused on long-term fixed-price contracts.

“We are honored to have been selected as Republic’s partner for this monumental joint venture, which is the beginning of a renewable energy platform that will become a critical part of Archaea’s mission to achieve the best environmental management and reducing greenhouse gas emissions,” said Nick Stork, co-founder and CEO of Archaea. “We are focused on long-term, value-driven capital investments that have a meaningful sustainability impact for future generations. We couldn’t be more aligned with this vision with our partners at Republic, and we’re We look forward to seeing the collective benefits this partnership will deliver to our respective shareholders, partners and communities.”

As a low-carbon fuel, RNG displaces a significant amount of greenhouse gas emissions and is increasingly recognized as a short-term climate strategy to reduce the carbon footprint of existing energy assets. Decarbonization efforts are expected to propel demand for RNG, with landfill gas offering greater scale and predictability than other sources for reliable renewable power generation.

The strategic partnership with Archaea Energy is expected to expand Republic Services’ renewable energy portfolio to more than 100 projects. It builds on a growing list of Republic environmental commitments, including fleet electrification and investments in the circularity of plastics, to create a more sustainable world.

Moelis & Company LLC is exclusive financial advisor to Republic Services, and Davis Polk & Wardwell LLP and Katz Barron are legal advisors to Republic Services.