Business Breakdowns

Archaea Energy: Turning Pollution into Profit - [Business Breakdowns, EP. 79]

5 snips
Oct 19, 2022
Chadd Garcia, lead portfolio manager of the Ave Maria Focused Fund, shares his insights on Archaea Energy, a leader in renewable natural gas. He discusses how the company transforms landfill methane into energy, highlighting its innovative approach and the environmental benefits. They dive into BP's recent $4.1 billion acquisition and its implications for landfill gas valuations. Key topics include financial growth prospects, market dynamics in renewable fuel, and the strategic importance of long-term contracts in this emerging sector.
Ask episode
AI Snips
Chapters
Transcript
Episode notes
INSIGHT

Landfill Gas Challenges

  • Landfill gas, or biogas, is roughly 50% methane, a potent greenhouse gas.
  • Historically, landfills flared methane, converting it to less potent CO2, or used it for on-site electricity.
INSIGHT

Archaea's Business Overview

  • Archaea Energy generates renewable natural gas (RNG) from landfill methane, with growing revenue and EBITDA.
  • They are a major player in the RNG market, which is experiencing rapidly increasing demand.
INSIGHT

Waste Hauling Value Chain

  • Municipalities contract with waste haulers, who either own landfills or pay tipping fees to dump waste.
  • Waste haulers may benefit from owning landfills (economic moat) or using municipal landfills (lower capital).
Get the Snipd Podcast app to discover more snips from this episode
Get the app