Rice Acquisition Corp. (NYSE:RICE) rose in early Thursday trading. Rice Acquisition reported an agreement to enter into a business combination with Aria Energy LLC and Archaea Energy LLC.
Rice calls itself a special purpose acquisition company focused on the energy transition sector, said the deal will create the industry-leading renewable natural gas (RNG) platform. The combined Company will be named Archaea Energy with an experienced executive team comprised of leaders from Archaea LLC and Aria.
Said Rice CEO Daniel Rice, “Early in our acquisition search, we identified landfill gas as the most predictable, cost-effective, and environmentally beneficial feedstock to help organizations achieve their carbon neutrality goals. We became determined to create a leading RNG platform, and I believe bringing together Archaea LLC and Aria goes beyond that; I think we’ve created a new paradigm in RNG development.
“The combination of these companies’ respective skills and assets instantly creates a proven, technology-driven LFG developer that’s operating at scale today with a deep inventory of highly economic, low-risk growth projects to meet the ever-growing RNG demand.”
Aria is being acquired for $680 million and brings a comprehensive portfolio of operational LFG assets, best-in-class operating experience, and a deep inventory of greenfield LFG-to-RNG projects and electric-to-RNG conversion opportunities.
Archaea LLC is being acquired for $347 million and brings leading RNG technology professionals, a deep inventory of LFG-to-RNG projects – including the world’s largest RNG plant currently under construction.
RICE shares galloped $4.51, or 44.6%, to $14.62.