BP completes acquisition of Archaea Energy

Houston-based BP America has completed its acquisition of Archaea Energy Inc., which is a provider of renewable natural gas that is based in Houston.

“We see enormous opportunity to grow our bioenergy business by bringing Archaea fully into BP,” says Dave Lawler, chairman and president BP America. “The talent, expertise and passion of their team has let them achieve incredible growth so far, and we’re excited to support the next chapter in line with our strategy.”

BP had announced its plans to acquire Archaea for about $4.1 billion, including $800 million of net debt, in October. At that time, the company said it planned to operate Archaea as a subsidiary within BP upon completion of the transaction, and Nick Stork would continue to lead Archaea as its CEO. The company said the deal was subject to regulatory and Archaea shareholder approval.

Having received those approvals and with the transaction complete, BP says Archaea will expand its presence in the U.S. biogas industry. The company says this acquisition will help it to support customers’ decarbonization goals and advance its goal of reducing the average life cycle carbon intensity of the energy product it sells.

BP says bioenergy is one of five strategic transition growth engines it intends to grow this decade. The company says it expects investment in its transition growth businesses, including bioenergy, to reach more than 40 percent of its total annual capital expenditure by 2025, with a goal to grow it to 50 percent by 2030.

According to BP, Archaea common shares will cease to be listed on the New York Stock Exchange with the transaction finalized.