(Bloomberg) -- Montauk Renewables Inc., which produces energy from methane collected at landfills, is exploring options including a potential sale as major oil companies look to scoop up alternative energy companies, people familiar with the matter said.

The Pittsburgh-based biogas firm is working with an adviser to study strategic alternatives, the people said, asking not to be identified because the matter isn’t public. 

Montauk Renewables rose 12% to $14.13 at 1:57 p.m. in New York trading Wednesday, giving it a market value of about $2 billion. 

The company, which also trades in Johannesburg, counts South African businessman John Copelyn as its biggest shareholder with a roughly 40% stake, according to data compiled by Bloomberg. 

The potential sale comes as natural gas prices soar following Russia’s attack on Ukraine. Montauk oversees a portfolio of about 15 operating projects producing natural gas and electricity in California, Idaho, Ohio, Oklahoma, Pennsylvania, North Carolina and Texas, according to a July press release. 

Many oil companies have vowed to replace fossil fuels with new sources of energy to meet climate-change targets, with some turning to acquisitions to meet that goal. Chevron Corp. agreed to buy green diesel producer Renewable Energy Group Inc. for $3.1 billion in February. 

No final decisions have been made, and Montauk could opt to remain independent, the people said. Representatives for Montauk didn’t respond to messages seeking comment.

(Updates trading in third paragraph)

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