TotalEnergies and Vanguard Renewables have signed an agreement to create an equally owned joint venture to develop, build and operate Farm Powered® renewable natural gas (RNG) projects in the United States.
The signing took place in New York on 12 April in the presence of Patrick Pouyanné, chairman and CEO of TotalEnergies and Larry Fink, chairman and CEO of BlackRock, of which Vanguard Renewables is a portfolio company.
TotalEnergies and Vanguard Renewables will advance 10 RNG projects into construction over the next 12 months, with a total annual RNG capacity of 0.8 TWh (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 75 GWh (0.25 Bcf) of RNG per year.
Beyond these 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 5 TWh (15 Bcf) per year.
"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," said Olivier Guerrini, vice president, biogas at TotalEnergies.
"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 decarbonise 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.”
“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," said Neil H. Smith, CEO at Vanguard Renewables.
"This collaboration validates Vanguard’s leadership position in the RNG space in the US and brings together our expertise with TotalEnergies’ extensive experience in large-scale energy development, safety procedures, and global partnerships," stated Neil H. Smith, CEO at Vanguard Renewables.
"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 decarbonise our planet.”
TotalEnergies signs US RNG agreement with Vanguard Renewables
