UGI Adds Renewable Natural Gas to its Supply Portfolio

Rhea-AI Summary

UGI Utilities has initiated the acceptance of Renewable Natural Gas (RNG) from Archaea Energy, marking a significant expansion in its pipeline distribution. With an interconnect agreement signed in Fiscal 2021, the new system can accommodate up to 5.3 billion cubic feet of RNG annually, representing the largest RNG supply point in the U.S. The Pennsylvania Public Utility Commission approved a five-year pilot program, allowing UGI to incorporate RNG into its supply for customers starting in 2022. This initiative aims to lower carbon emissions and support sustainable energy practices.

Positive

• Initiation of RNG acceptance from Archaea Energy enhances UGI's service offerings.
• Capable of processing up to 5.3 billion cubic feet of RNG annually, positioning UGI as a leader in RNG supply.
• This project is expected to significantly reduce CO2 emissions, equivalent to removing 67,000 passenger vehicles.
• Regulatory approval of a five-year pilot program allows direct supply of RNG to customers.

Negative

• None.

DENVER, Pa.--(BUSINESS WIRE)-- UGI Utilities, Inc. (“UGI Utilities”) has begun to accept Renewable Natural Gas (RNG) from Archaea Energy into its pipeline distribution system. UGI Utilities is a subsidiary of UGI Corporation (NYSE:UGI).

In Fiscal 2021, UGI Utilities signed an interconnect agreement with Archaea Energy to accept delivery of RNG produced from the Keystone Landfill in Dunmore, Pennsylvania, into its natural gas pipeline that serves its distribution system. Once fully operational, the recently completed interconnect is capable of accommodating up to 5.3 billion cubic feet of RNG supply each year, making this the largest current RNG supply point in the United States to date. The introduction of RNG supply into UGI Utilities’ distribution system provides benefits to the environment and to the many communities we serve by lowering net carbon emissions.

UGI Utilities expects to utilize a portion of the RNG to serve customers who purchase supply directly from UGI Utilities beginning in 2022. This purchase was made possible by regulatory approval of a five-year pilot program by the Pennsylvania Public Utility Commission (PUC). The pilot, the first of its kind in Pennsylvania, allows UGI Utilities to integrate RNG into its supply purchase portfolio to provide benefits for its customers.

All three PUC commissioners supported and commended UGI Utilities’ RNG pilot program, including PUC Chair, Gladys Brown Dutrieulle, with specific acknowledgement by Commissioners Ralph V. Yanora and John F. Coleman, Jr. who commended UGI Utilities for the initiative as it “represents an innovative economic model that balances environmental, customer, and gas supply requirements consistent with the Commonwealth’s least-cost gas supply requirements.”

“The approval of this pilot program is a significant step forward as we continue to develop sustainable, environmentally responsible energy solutions for our customers,” said Robert F. Beard, Executive Vice President - Natural Gas, Global Engineering, Construction and Procurement, UGI. “UGI remains committed to developing renewable energy sources for the communities we serve.”

RNG from landfills is a low carbon energy solution that is derived from organic waste. It is a sustainable and reliable energy source that is highly compatible with existing infrastructure when blended with natural gas. RNG can also be used directly in a manner consistent with natural gas use for residential, commercial, industrial and transportation customers.

Accepting the delivery of RNG reduces the release of naturally occurring methane from the Keystone Landfill into the atmosphere. It is anticipated that this project will reduce CO2 emissions by an amount equivalent to removing 67,000 passenger vehicles over the course of a calendar year.

About UGI Corporation

UGI Corporation is a distributor and marketer of energy products and services. Through subsidiaries, UGI operates natural gas and electric utilities in Pennsylvania and West Virginia, distributes LPG both domestically (through AmeriGas) and internationally (through UGI International), manages midstream energy assets in Pennsylvania, Ohio, and West Virginia and electric generation assets in Pennsylvania, and engages in energy marketing, including renewable natural gas in the eastern region of the United States and California, and internationally in France, Belgium, the Netherlands and the UK.

Comprehensive information about UGI Corporation is available on the Internet at https://www.ugicorp.com.

About UGI Utilities

UGI Utilities is a natural gas and electric utility with headquarters in Denver, Pennsylvania. UGI serves more than 734,000 customers in 46 Pennsylvania counties and one county in Maryland. Customers and community members are invited to visit the UGI website at www.ugi.com; our Facebook page at www.facebook.com/ugiutilities; or follow us on Twitter at www.twitter.com/ugi_utilities.

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Investor Relations

610-337-1000

Tameka Morris, ext. 6297

Arnab Mukherjee, ext. 7498

Source: UGI Utilities, Inc.

FAQ

What is UGI's recent initiative regarding Renewable Natural Gas (RNG)?

UGI Utilities has begun accepting RNG from Archaea Energy to enhance its pipeline distribution system.

How much Renewable Natural Gas can UGI Utilities accommodate annually?

UGI Utilities' new interconnect can accommodate up to 5.3 billion cubic feet of RNG supply each year.

What environmental benefits does UGI's RNG project offer?

The project is expected to reduce CO2 emissions by removing the equivalent of 67,000 passenger vehicles annually.

What regulatory approval did UGI receive for its RNG pilot program?

The Pennsylvania Public Utility Commission approved a five-year pilot program for UGI to integrate RNG into its supply for customers.

When will UGI Utilities start supplying RNG to its customers?

UGI Utilities expects to start supplying RNG to customers in 2022.