TotalEnergies has partnered with Vanguard Renewables, a BlackRock portfolio company, to jointly transform food waste and dairy farm manure into renewable natural gas (RNG).
The equally owned joint venture (JV) announced on April 24 initially aims to advance 10 RNG projects into construction during the next 12 months, Massachusetts-based Vanguard said in a news release.
Combined, the projects have an annual capacity of 2.5 Bcf. Construction has started for three projects in Virginia and Wisconsin.
From there, the project pipeline could grow to about 60 with a total annual capacity of 15 Bcf.
Energy companies are pursuing RNG, which can be used the same way as fossil gas, as they look to fulfill low-carbon initiatives. RNG’s attractive carbon profile and its access to incentives that improve project economics are leading to more projects in the U.S.
“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,” said Olivier Guerrini, vice president of biogas at TotalEnergies. “This joint venture is a new step for TotalEnergies in achieving its objective to produce 10 TWh [terawatt-hours] of renewable natural gas by 2030.”
TotalEnergies plans to bring its industrial expertise to the JV and provide technical support on facility design and engineering, while Vanguard will bring its experience managing feedstock supply, assets, operations and RNG sales, according to the release.
Vanguard currently operates 17 organics-to-renewable energy facilities with an annual capacity of more than 1.5 Bcf of RNG, the company said. It plans to commission more than 100 RNG projects by year-end 2028.
“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,” said Vanguard Renewables CEO Neil H. Smith. “These 10 RNG projects, jointly undertaken by TotalEnergies and Vanguard Renewables as co-investment partners, further reinforce our commitment and ability to deliver on our mission of harnessing the power of waste to decarbonize our planet.”
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