Rice announces $1bn spend on US renewable gas
US-based Rice Acquisition said April 7 it was spending more than $1bn to bring companies together to kickstart the development of renewable natural gas (RNG).
From Pennsylvania, Rice, an entity set up to acquire companies focused on the energy transition, said it was combining its business with Aria Energy, a portfolio of funds managed by the infrastructure and power strategy of Ares Management, and Archea Energy, a company focused on renewable gas.
The new company, named Archea Energy, represents a $1.02bn spend by Rice Acquisition for the sole purpose of creating a renewable natural gas entity in the combined company.
“We are on a mission to transform the role of RNG in empowering organisations to decarbonise and achieve their sustainability goals,” Nicholas Stork, the co-founder of Archea and the CEO of the combined company, said.
Archea Energy is expected to source renewable natural gas from landfills. The combined company estimates that US landfills are expected to produce 13bn tons of waste by 2050, a 63% increase from 2020 levels. Emissions generated from that waste are expected to increase from 1.9bn ft3/d to 2.8bn ft3/d by 2050.
“Capturing these emissions, comprised of about 50% methane and about 35% CO2, has the same environmental benefit as electrifying 75% of US passenger vehicles,” it explained.