Total Energies, a prominent energy company headquartered in France, has joined forces with Vanguard Renewables, a portfolio company of the investment management firm BlackRock, to establish a new joint venture dedicated to advancing renewable natural gas (RNG) projects in the United States. This partnership aims to harness the potential of converting food biowaste into RNG, a sustainable alternative to traditional fossil-based natural gas.
RNG, also known as biomethane, is produced from organic waste materials such as agricultural, industrial, and household waste through a process called anaerobic digestion. It holds significant promise as a renewable energy source, particularly in hard-to-abate sectors like transportation and heavy industry, where reducing carbon emissions is a pressing challenge.
Doug Vaccari, Managing Director, Diversified Infrastructure at BlackRock, said:
“This exciting partnership brings together TotalEnergies’ global experience in scaling and operating renewable gas assets with Vanguard Renewables’ market-leading position in the United States, extensive operational history and customer relationships, and robust project portfolio. With TotalEnergies as a strategic partner, Vanguard Renewables will be positioned to achieve even stronger growth and continued success.”
Vanguard Renewables, based in Massachusetts, has been at the forefront of developing and operating anaerobic digesters to convert organic waste into renewable energy since its establishment in 2014. The company currently operates 17 organics-to-renewable energy facilities with an annual capacity of over 440 GWh (1.5 Bcf) of RNG. Vanguard Renewables aims to commission over 100 RNG projects by the end of 2028, highlighting its commitment to driving sustainable energy solutions.
BlackRock’s Diversified Infrastructure business acquired Vanguard Renewables in 2022 in a deal valued at $700 million, with plans to invest an additional $1 billion to support the company’s expansion efforts. This acquisition underscored BlackRock’s commitment to investing in renewable energy infrastructure and accelerating the transition to a low-carbon economy.
The new joint venture between Total Energies and Vanguard Renewables signifies a strategic collaboration to capitalize on the growing demand for renewable energy solutions in the U.S. market. By combining Total Energies’ global experience in scaling and operating renewable energy assets with Vanguard Renewables’ market-leading position and extensive operational history in the United States, the partnership aims to drive significant growth and success in the RNG sector.
Neil H. Smith, Chief Executive Officer at Vanguard Renewables, said:
“We are thrilled to welcome TotalEnergies as a strategic partner, building on our mission of developing farm-based organics-to-renewable natural gas projects across the United States. This collaboration validates Vanguard’s leadership position in the RNG space in the U.S. and brings together our expertise with TotalEnergies’ extensive experience in large-scale energy development, safety procedures, and global partnerships.”
Under the agreement, the joint venture plans to advance 10 RNG projects into construction over the next 12 months, with a total annual RNG capacity of 0.8 TWh (2.5 Bcf). These projects will focus on utilizing waste materials from the food and beverage industries and will include the installation of anaerobic digesters on dairy farms to convert organic waste into RNG. Notably, three initial projects are already under construction in Wisconsin and Virginia, each with a unit capacity of nearly 75 GWh (0.25 Bcf) of RNG per year.
Looking ahead, the partners envision further expansion beyond the initial 10 projects, with plans to invest in a potential pipeline of approximately 60 projects across the country, ultimately targeting a total capacity of 5 TWh (15 Bcf) of RNG per year. This ambitious growth strategy underscores the partners’ commitment to driving innovation and sustainability in the renewable energy sector.
Neil H. Smith, Chief Executive Officer at Vanguard Renewables, expressed enthusiasm for the partnership, emphasizing its validation of Vanguard’s leadership position in the RNG space in the U.S. He highlighted the collaborative efforts to develop farm-based organics-to-RNG projects across the country, emphasizing the importance of the collaboration in advancing sustainable energy solutions.
Total Energies has set an ambitious goal to produce 10 TWh of biomethane by 2030, equivalent to reducing CO2 emissions by approximately 4 million tons. The company’s biogas capacity in Europe currently stands at 1.1 TWh, and it aims to expand its presence in the international market through strategic partnerships and collaborations.
Olivier Guerrini, Vice President of Biogas at Total Energies, underscored the significance of the joint venture with Vanguard Renewables in accelerating the development of food biowaste processing into renewable natural gas in the United States. He highlighted the potential benefits for the food and farming sectors, as well as industrial companies seeking to decarbonize their energy supply. This partnership represents a pivotal step for Total Energies in achieving its objective to produce 10 TWh of renewable natural gas by 2030, reaffirming its commitment to driving sustainability and innovation in the energy sector.
Olivier Guerrini, Vice President, Biogas at TotalEnergies said:
“TotalEnergies is pleased to partner with BlackRock and its portfolio company Vanguard Renewables, to accelerate the development of food biowaste processing into renewable natural gas in the United States. By expanding into this fast-growing market, our joint venture will create value for both companies while benefiting the food and farming sectors as well as providing a ready-to-use solution to industrial companies willing to decarbonize their energy supply. This joint venture is a new step for TotalEnergies in achieving its objective to produce 10 TWh of renewable natural gas by 2030.”
