Archaea Energy signs 21-year RNG agreement with Northwest Natural Gas Co.

Archaea Energy Inc., Houston, has entered into a long-term renewable natural gas (RNG) purchase and sale agreement with Northwest Natural Gas Co. (NW Natural), a subsidiary of NW Natural Holdings.

Under the agreement, NW Natural will purchase the waste emissions derived RNG generated by Archaea related to up to one million metric million British thermal units (MMBtu) annually from its portfolio of RNG production facilities for a fixed fee for a period of 21 years.

According to a release, the agreement will commence in early 2022, with the full annual quantity beginning in 2025.

“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% of NW Natural’s annual sales volume in Oregon.

This agreement 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.