BP announces $4.1bn Archaea acquisition

The oil major aims to expand its presence in the US biogas industry

BP has announced it will buy US renewable natural gas (RNG) firm Archaea for $3.3bn in cash, as well as providing around $800mn of net debt, in an effort to expand its biogas business. RNG can be used interchangeably with fossil fuel-based natural gas. And while it is not zero-carbon, as it is derived from organic waste, its use results in lower lifecycle greenhouse gas emissions than fossil fuel-based gas, which could help BP meet its interim targets to reduce the carbon intensity of its energy products by 5pc by 2025 and 15-20pc by 2030. Archaea operates 50 RNG and landfill gas-to-energy facilities in the US and produces around 6,000bl/d oe. The acquisition is expected to provide an immedi