TotalEnergies and Vanguard Renewables Collaborate to Advance RNG Development in the US

TotalEnergies, a globally integrated energy company, and Vanguard Renewables, a leading US provider in farm-based organics-to-renewable natural gas (RNG) production and a portfolio company of a fund managed by BlackRock’s Diversified Infrastructure business, have officially inked an agreement to establish a joint venture (JV). This JV, equally owned by both entities, is poised to spearhead the development, construction, and operation of Farm Powered® RNG projects throughout the United States.

Over the next 12 months, TotalEnergies and Vanguard Renewables are gearing up to push forward 10 RNG projects into the construction phase, with a combined annual RNG capacity set to reach 0.8 TWh (equivalent to 2.5 billion ft3). Among these, three initial projects outlined in the agreement are already underway in Wisconsin and Virginia, each boasting a unit capacity of nearly 75 GWh (approximately 0.25 billion ft3) of RNG per year. Looking ahead, the partnership eyes further expansion, contemplating investment collaboration on a potential pipeline of around 60 projects nationwide, with an anticipated total capacity of 5 TWh (or 15 billion ft3) per annum.

Olivier Guerrini, Vice President of Biogas at TotalEnergies, expressed enthusiasm for the collaboration, highlighting its strategic significance in accelerating food biowaste processing into RNG across the US market. This partnership not only aims to create value for both companies but also promises benefits for the food and farming sectors, alongside offering a readily deployable solution for industrial firms committed to decarbonizing their energy supply. Guerrini underscored that this JV marks a pivotal milestone for TotalEnergies, aligning with its ambitious target of producing 10 TWh of RNG by 2030.

Leveraging Vanguard Renewables' seasoned teams and robust development platform, the JV will tap into ready-to-build projects at scale. Vanguard Renewables will oversee feedstock supply, asset management, operations, and RNG sales. Meanwhile, TotalEnergies will contribute its industrial expertise, particularly in design, engineering, and operational performance, derived from its strong presence in the European market, notably in France and Poland.

In tandem, TotalEnergies and Vanguard Renewables will navigate the RNG market through long-term purchase agreements with buyers actively pursuing decarbonization initiatives within their industrial operations.

The first 10 projects are centered around a waste materials recovery model, primarily sourcing from the food and beverage sectors, supplemented by dairy manure from dairy farms. Anaerobic digesters, the cornerstone of these projects, will be strategically installed on dairy farms, facilitating the recovery and management of digestate as a low-carbon, nutrient-dense fertilizer.

Vanguard Renewables has established an extensive network of leading food industry brands across the US, supplemented by the pioneering Farm Powered Strategic Alliance. This alliance, comprising multinational corporations across various sectors, including food, beverage, and pharmaceuticals, offers preferred access for members to recycle organic waste generated from manufacturing or retail activities, coupled with the prospect of purchasing renewable energy generated by Vanguard Renewables’ facilities.

To accommodate its expanding portfolio of anaerobic digesters, Vanguard Renewables has augmented its food and beverage diversion services and organics solutions team, aiming to provide comprehensive service coverage throughout the contiguous US.