To expand and accelerate its bioenergy business, BP plc on Monday agreed to acquire Archaea Energy Inc., a leading U.S. renewable natural gas (RNG) producer.

rng supply graph

The acquisition, subject to Archaea shareholder approval, would be for $3.3 billion in cash and close to $800 million in debt. 

Bioenergy is one of the five strategic transition growth engines that BP plans to expand through this decade. The London-based supermajor expects its investment into transition growth businesses to be more than 40% of annual capital spending by 2025, reaching 50% by 2030.

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“Archaea is a fantastic, fast growing business, and BP will add distinctive value...