BP has sealed a $4.1bn (£3.6bn) deal to buy US renewables firm Archaea Energy as it continues to push towards its net zero ambitions.
The British fuel giant has moved for the biogas producer in a bid to rapidly grow its alternative fuels business.
It has offered to buy Archaea for $26 per share, representing $3.3 billion dollars, and will take on debt worth a further $800m.
BP said it will roughly double the company’s expected earnings from renewable natural gas, taking this to around $2bn by 2030.
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Houston-based Archaea Energy operates around 50 renewable natural gas and landfill gas-to-energy facilities across the US.
Bernard Looney, chief executive of BP, said: “Archaea is a fantastic fast-growing business, and BP will add distinctive value through our trading business and customer reach.
“It will accelerate our key bioenergy growth engine, creating a real leader in the biogas sector, and support our net zero ambition.
“And, importantly, we’re doing this while remaining focused on the disciplined execution of our financial frame.
“Investing with discipline into the energy transition, creating further value through integration – this is exactly what BP’s transformation into an integrated energy company is all about.”
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