Archaea Energy signs 21-year RNG agreement with NW Natural

By Archaea Energy Inc. | November 17, 2021

Archaea Energy Inc., an industry leading renewable natural gas (RNG) company, announced Nov. 15 that its subsidiary Archaea Holdings LLC has entered into a long-term RNG purchase and sale agreement with Northwest Natural Gas Co., a subsidiary of NW Natural Holdings. NW Natural provides natural gas service to approximately 2.5 million people in Oregon and Southwest Washington.

Under the agreement, NW Natural will purchase the environmental attributes generated by Archaea related to up to one million MMBtu of RNG annually from its portfolio of RNG production facilities for a fixed fee for a period of 21 years. The agreement will commence in early 2022, with the full annual quantity beginning in 2025. The RNG produced by Archaea for this long-term partnership is expected to have a positive impact through avoided methane emissions at U.S. landfills and displacement of conventional natural gas.

“We are pleased to partner with NW Natural and look forward to our multi-decade business relationship,” said Nick Stork, Archaea co-founder and CEO. “This agreement, our first with a U.S. utility, is a testament to the strength of our commercial offerings and highlights our ability to help utilities provide lower carbon options to their customers and achieve their sustainability goals.”

“We’re excited to work with the experienced leadership at Archaea to help lower emissions on behalf of our customers,” said David H. Anderson, NW Natural president and CEO. “This agreement is another meaningful step on the path to achieving our long-term carbon neutrality goal, while also helping communities close the loop on waste.”

This marks the third RNG contract for NW Natural under the landmark Oregon Senate Bill 98, which supports renewable energy procurement and investment by natural gas utilities. With the addition of this most recent contract, NW Natural has signed agreements with options to purchase or develop RNG totaling about 3 percent of NW Natural’s annual sales volume in Oregon.