Investment Creates Largest Portfolio of RNG Landfill Gas Development Projects in the Country
PHOENIX and HOUSTON, May 5, 2022 /PRNewswire/ — Republic Services, Inc. (NYSE: RSG), a leader in the environmental services industry, and Archaea Energy, Inc. (“Archaea”) (NYSE: LFG), the leader in the renewable natural gas industry ( “RNG”) in the United States, today announced a joint venture to develop 39 RNG projects 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 fossil fuel gas The initiative is expected to generate substantial progress toward Republic’s long-term sustainability goal of beneficially reusing 50% of 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 dramatically, 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, build 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 millionand Republic will contribute approximately $300 million for a total investment of approximately $1.1 billion in the joint venture over a period of five years.
Archaea is one of the largest RNG producers in the United States, with a state-of-the-art RNG platform primarily focused on capturing and converting landfill waste emissions into low-carbon RNG and 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,” mentioned 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 the exclusive financial advisor to Republic Services, and Davis Polk & Wardwell LLP and Katz Barron are legal advisors to Republic Services.
About Republic Services
Republic Services, Inc. is a leader in the US environmental services industry. Through its subsidiaries, the company provides superior service offerings while partnering with its customers to create a more sustainable world. For more information, visit RepublicServices.comor follow us on Facebook.com/RepublicServices, @RepublicService on Twitter or Republic Services on LinkedIn.
Archaea Energy Inc. is one of the largest RNG producers in the United States, with a state-of-the-art platform and expertise in the development, construction and operation of RNG facilities to capture waste emissions and convert them into low-carbon fuel. Archaea’s innovative, technology-driven approach leverages significant expertise in gas processing, enabling Archaea to deliver RNG projects that are expected to have higher uptime and efficiency, faster project timelines and lower development costs. Archaea partners with landfill and farm owners to help them turn potential sources of emissions into RNG, transforming their facilities into renewable energy hubs. Archaea’s differentiated business strategy is focused on long-term contracts that provide business partners with a reliable, non-intermittent, and sustainable decarbonization solution to replace fossil fuels. Additional information is available at www.archaeaenergy.com.
This press release contains certain forward-looking information about Republic Services and Archaea that is intended to be covered by the “forward-looking statements” exemption rule provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Words such as “expect”, “will”, “may”, “anticipate”, “plan”, “may”, “could” and similar expressions are intended to identify forward-looking statements. These statements include information about Republic Services’ and Archaea’s plans, strategies and outlook. Forward-looking statements are not guarantees of performance. These statements are based on the current beliefs and expectations of the management of Republic Services and the management of Archaea and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed, implied or projected. by forward-looking information and statements. Among the factors that could cause actual results to differ materially from the expectations expressed in the forward-looking statements include the costs and timing of the start-up and completion of RNG projects, the rate at which the joint venture can convert landfill gas in GNR, the impact of economic, financial and social conditions United States and Republic’s ability to deliver on its sustainability commitments and goals on time. Further information about factors that could cause actual results or events to differ materially from those anticipated is included from time to time in Republic Services’ and Archaea’s reports filed with the Securities and Exchange Commission. Republic Services and Archaea undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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SOURCE Republic Services, Inc.