TotalEnergies, Vanguard Renewables to Develop RNG in US

OAKHURST, N.J. (DTN) –- TotalEnergies and Vanguard Renewables, a portfolio company of a fund managed by Black Rock's Diversified Infrastructure business, have agreed to create a 50/50 joint venture to develop, build and operated Farm Powered(R) renewable natural gas projects in the United States.

TotalEnergies and Vanguard Renewables will advance 10 RNG projects into construction over the next 12 months, with a total RNG capacity of 2.5 Bcf. The three initial projects in this agreement are currently under construction in Wisconsin and Virginia, each with a unit capacity of nearly 0.25 Bcf of RNG per year.

Beyond the first 10 projects, the partners will consider investing together in a potential pipeline of about 60 projects across the country for a total capacity of 15 Bcf per year.

Vanguard Renewables will contribute to the JV its ready-to-build projects at scale and also manage feedstock supply, the assets, operations and RNG sales. Leveraging its strong position in European markets, especially in France and Poland, TotalEnergies will bring to the JV its industrial expertise, providing technical support and the design and engineering of the facilities and on the plant's operational performance.

TotalEnergies and Vanguard Renewables will market the RNG through long-term purchase agreements with buyers actively engaged in the decarbonization of their industrial processes.

The signing of the agreement took place on April 12 in New York in the present of Patrick Pouyanne, chairman and CEO of TotalEnergies, and Larry Fink, chairman and CEO of BlackRock.

Headquartered near Boston, Massachusetts, Vanguard Renewables was founded in 2014 and currently operates 17 organics-to-renewable energy facilities with an annual capacity of more than 1.5 Bcf of RNG. Looking beyond 2024, Vanguard Renewables plans to commission over 100 RNG projects by the end of 2028.

In July 2022, Vanguard Renewables was acquired by BlackRock, through a fund managed by its Diversified Infrastructure business. BlackRock has partnered with Vanguard Renewables' management team to drive the next phase of its growth to support the nationwide expansion of its anaerobic digester projects from coast to coast. BlackRock will remain the majority shareholder of Vanguard Renewables.