UGI Energy Services announced a new partnership with the City of Philadelphia to supply renewable natural gas (RNG) to the city’s 35 compressed‑natural‑gas trash compactors. The deal marks the first time Philadelphia will use RNG attributes for its CNG fleet, with biogas sourced from Pennsylvania landfills and other regional facilities.
The agreement expands UGI’s RNG portfolio and supports Philadelphia’s Municipal Clean Fleet Plan, which aims to reduce landfill flaring and lower greenhouse‑gas emissions by powering municipal vehicles with renewable fuels. By delivering RNG to the city’s compactors, the partnership helps cut methane emissions from landfill flaring and creates a local market for biogas that would otherwise be vented.
UGI has been building a diversified RNG pipeline, acquiring marketers and investing in landfill‑based projects to increase annual natural‑gas volumes. The Philadelphia deal aligns with that strategy, adding a stable, long‑term customer and reinforcing UGI’s position as a midstream and utilities company that can deliver RNG to end users.
Joe Hartz, president of UGI Energy Services, said the partnership “strengthens our RNG portfolio and supports Philadelphia’s sustainability goals by ensuring a secure supply of biogas from Pennsylvania landfills.” City officials echoed the sentiment: “This initiative demonstrates our commitment to a cleaner municipal fleet and supports local renewable‑fuel markets.”
UGI’s Q3 2025 earnings showed a revenue miss and a negative GAAP diluted EPS of $‑0.76, reflecting broader market headwinds. While the RNG deal does not disclose revenue figures, it represents a new revenue stream that could help offset the company’s recent earnings challenges and support long‑term growth in the midstream and utilities segments.
The partnership is a strategic win for UGI, positioning the company to capture a growing share of the RNG market and reinforcing its commitment to sustainability, even as it navigates short‑term financial pressures.
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