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BP has agreed to buy U.S. renewable gas producer Archaea for $4.1 billion to help the British oil giant reach net zero carbon emissions by 2050.
The London-listed energy major is flush with cash after recent surges in oil prices that have triggered calls for the cash-strapped U.K. government to massively enlarge a windfall tax on British energy giants.
Chief executive Bernard Looney said in a statement that the acquisition of Archaea would create “a real leader in the biogas sector, and support our net zero ambition”.
Houston-based Archaea produces renewable natural gas equivalent in amount to about 6,000 barrels of oil per day.
BP will pay $3.3 billion in cash plus around $800 million in debt, while the purchase remains subject to regulatory and Archaea shareholder approvals.
The U.K. energy titan is attempting to pivot towards cleaner fuels to help tackle climate change.
In June, BP said it was taking a 40.5 percent stake in an Australian energy project being billed as one of the world’s largest renewable power stations.
But energy majors are often faced with charges of corporate greenwashing, especially by environmentalists.
Greenpeace U.K. policy director Doug Parr said on Oct. 17 that with Britain’s new finance minister Jeremy Hunt U-turning on tax cuts to limit state debt, “why not consider a full and proper windfall tax on oil and gas?”.
He added: “This government has already made more U-turns than a battalion on parade — one more won’t hurt and it’s the right one.”
