Rochelle Toplensky of The Wall Street Journal reports that BP is betting big on biofuel.
- BP has bought out renewable natural gas producer Archaea Energy for $4.1 billion.
- The company uses animal and food waste to create a renewable, green natural gas.
- Earlier this year BP bought a major stake in several renewable and green hydrogen projects in an effort to lower its emissions.
- This purchase could accelerate renewable and sustainable fuel development in the United States.
“BP highlighted that it has paid four times the forecast 2027 Ebitda, but the valuation amounts to around 28 times Archaea’s 2022 figure. While that is aggressive, BP isn’t alone in expecting big growth in biofuels. Montauk Renewables, another U.S.-listed pure play, trades at an enterprise value of 22.5 times Ebitda.”
Read the full article here.