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.”
Recommended Reading
Sea Power: Noble’s Deal Fires Major Volley in Offshore, Services M&A
2024-06-14 - Noble Corp.’s $1.6 billion acquisition of Diamond Offshore Drilling may seem like small potatoes compared to the upstream sectors’ massive megadeals, but service sector consolidation could snowball, analysts said.
Private Equity Looks for Minerals Exit
2024-07-26 - Private equity firms have become adroit at finding the best mineral and royalties acreage; the trick is to get public markets to pay more attention.
Vår Selling Norne Assets to DNO
2024-05-08 - In exchange for Vår’s producing assets in the Norwegian Sea, DNO is paying $51 million and transferring to Vår its 22.6% interest in the Ringhorne East unit in the North Sea.
SLB OneSubsea JV to Kickstart North Sea Development
2024-05-07 - SLB OneSubsea, a joint venture including SLB and Subsea7, have been awarded a contract by OKEA that will develop the Bestla Project offshore Norway.
Blankenship, Regens: More Demand, More M&A, More Regs
2024-05-23 - In 2024, the oil and gas industry is dealing with higher interest rates, armed conflicts in Europe and the Middle East, rising material costs, a decrease in Tier 1 acreage and new policies and laws.