Accelerates bioenergy growth 

• Acquisition of a leading US renewable natural gas (RNG) producer will accelerate growth of bp’s strategic bioenergy transition growth engine
• Operates 50 RNG and landfill gas-to-energy facilities across US, with development pipeline supporting potential for around five-fold increase in RNG volumes by 2030
• Doubles the EBITDA bp expects from biogas to around $2 billion by 2030; supports increase in bp’s aim for EBITDA from transition growth businesses by 2030 from $9-10 billion to more than $10 billion

Adds distinctive value

• Builds on bp’s existing biogas business – expanding in the US, a key fast-growing geography for biogas
• Expect additional distinctive value through integration with bp’s trading capabilities and global customer relationships  

Maintains financial discipline

• $3.3 billion cash acquisition; acquisition multiple of around four times(1) 
• Remain committed to disciplined financial frame; five priorities unchanged, including no change to dividend or buyback guidance
• Expected to be accretive to both earnings and free cash flow per share, post integration, and to deliver double-digit returns
• Supports net zero ambition
• Biogas growth supports both customer decarbonization goals and bp’s aim to reduce carbon intensity of energy products it sells
• In a move that will expand and accelerate the growth of its strategic bioenergy business, bp today announced that it has agreed to acquire Archaea Energy Inc., a leading producer of renewable natural gas (RNG) in the US. The agreed acquisition, which is subject to regulatory and Archaea shareholder approval, will be for $3.3 billion in cash, as well as around $800 million of net debt(2).  
• Bioenergy is one of five strategic transition growth engines that bp intends to grow rapidly through this decade. bp expects investment into its transition growth businesses to reach more than 40% of its total annual capital expenditure by 2025, aiming to grow this to around 50% by 2030. 

Acquiring Archaea will expand bp’s presence in the US biogas industry, enhancing its ability to support customers’ decarbonization goals and also progressing its aim to reduce the average carbon intensity of the energy products it sells. bp aims to reduce that carbon intensity to net zero by 2050 or sooner(3).

Bernard Looney, bp chief executive, said: 
“Archaea is a fantastic fast-growing business, and bp will add distinctive value through our trading business and customer reach. It will accelerate our key bioenergy growth engine, creating a real leader in the biogas sector, and support our net zero ambition. And, importantly, we're doing this while remaining focused on the disciplined execution of our financial frame. Investing with discipline into the energy transition, creating further value through integration – this is exactly what bp’s transformation into an integrated energy company is all about.”

KeyFacts Energy: bp United States country profile