bp completes acquisition of Archaea Energy
“We see enormous opportunity to grow our bioenergy business by bringing Archaea fully into bp,” said 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.”
In October, bp announced it had agreed to acquire Archaea, subject to regulatory and Archaea shareholder approval.
Having received those approvals and with the transaction complete, bp said Archaea expands its presence in the US biogas industry, enhancing its ability to support customers’ decarbonisation goals and progressing its aim to reduce the average lifecycle carbon intensity of the energy products it sells.
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.
However, bp was recently criticised for its plans to spend as much as double the amount on oil and gas projects than on renewable investments in 2023.
“Where you spend your money says a lot about your priorities,” said Mike Childs, head of policy at Friends of the Earth. “It’s astounding that in the middle of a climate emergency bp is planning to invest billions more dollars on planet-warming fossil fuels than on clean, green renewables.”