BP buys biogas producer Archaea for $4.1 billion

British oil company BP announced on Monday the purchase of US “renewable gas” producer Archaea Energy for $4.1 billion, with the aim of moving towards its goal of carbon neutrality in its business by 2050.

Archaea produce biogas, mainly methane, from waste from landfills or from processing organic matter from livestock or food.

With this operation, BP, which has huge liquidity as a result of the surge in oil prices in recent months, hopes to “significantly increase its bioenergy activity,” he explained in a statement.

It counts on this acquisition, which has not been approved by regulators and Archaea shareholders, to “support its progress towards its carbon neutrality goals.”

The operation, the British giant’s chief executive, Bernard Looney, said on Monday, will create “a true leader in the biogas sector and will support our zero-emissions ambitions.”

Houston-based Archaea produces renewable natural gas equivalent to about 6,000 barrels of oil per day.

BP will pay $3.3 billion in cash plus about $800 million in debt.

BP, which is listed on the London Stock Exchange, is trying to switch to cleaner fuels to help fight climate change, but big energy companies are often accused of washing the company’s image, especially by environmentalists.

Greenpeace UK policy director Doug Parr asked Monday, after new finance minister Jeremy Hunt rejected the tax cut, “why not consider a full and proper tax on oil and gas?”.

Even Ben van Beurden, the former CEO of oil rival BP Shell, recently argued that the government “may” have to tax more energy companies to help the poor pay for rising energy bills.

But so far, British Prime Minister Liz Truss – a former Shell employee – has refused to tax more energy companies.

bur-ac/mb

Roderick Gilbert

"Entrepreneur. Internet fanatic. Certified zombie scholar. Friendly troublemaker. Bacon expert."

Leave a Reply

Your email address will not be published. Required fields are marked *