Republic Services, Inc. and Archaea Energy, Inc. announced a joint venture to develop 39 RNG projects across the country. The partnership will convert landfill gas into pipeline-quality RNG that can be used for a variety of applications to displace gas from fossil fuels. The initiative is expected to generate substantial progress towards Republic's long-term sustainability goal to beneficially reuse 50% more biogas by 2030.

Archaea Energy will develop, engineer, construct and operate the RNG facilities, which will be located at Republic Services' landfills in 19 states. Construction is slated to begin on projects in late 2022, with completion and commissioning of the projects planned through 2027. When fully operational, the 39 projects are expected to generate more than 12.5 million MMBtu of RNG annually.

The joint venture has signed a gas sale agreement with Republic to provide for the long-term ability to process landfill gas and sell RNG and related environmental attributes. Archaea Energy will contribute approximately $800 million, and Republic will contribute approximately $300 million for total investment of approximately $1.1 billion into the joint venture over the course of five years. The strategic partnership with Archaea Energy is expected to expand Republic Services' renewable energy portfolio to more than 100 projects.

It builds on a growing slate of environmental commitments by Republic, including fleet electrification and investments in plastics circularity, to create a more sustainable world. Moelis & Company LLC is serving as exclusive financial advisor to Republic Services, and Davis Polk & Wardwell LLP and Katz Barron are serving as Republic Services' legal counsel.