Save for later Print Download Share LinkedIn Twitter UK major BP plans to more than double its renewable natural gas production by 2030 following the acquisition of US landfill gas specialist Archaea Energy. BP will pay $3.3 billion — $26 per share — a 38% premium to the 30-day average share price. It will also take on $800 million of Archaea debt, taking the overall enterprise value of the deal to $4.1 billion. Archaea brings BP about 6,000 boe/d of biogas production from 50 facilities across the US. Most of Archaea's facilities sit atop landfill sites where methane produced by the buried waste is captured before it can escape into the atmosphere. The global oil majors are ramping up their presence in an array of biofuel businesses including synthetic and renewable gases as well as liquid fuels like biodiesel and sustainable aviation fuel. Earlier this year, Chevron announced the $3.15 billion purchase of biodiesel specialist Renewable Energy Group. BP CEO Bernard Looney said that integrating Archaea into BP’s trading and supply operations and taking advantage of the many state and federal green energy credits for renewable fuels could augment the already "double-digit" returns anticipated from the business. BP estimates that Archaea will produce $500 million in annual free cash flow by 2025 and about $1 billion by 2027.