Blackrock, Total Energies Team Up for US RNG

Total Energies, an energy behemoth based in France, and Vanguard Renewables, a BlackRock portfolio firm, have formed a joint venture to build projects in the U.S. to convert food biowaste into renewable natural gas (RNG).

The companies plan to advance 10 RNG projects into construction over the next 12 months, with a total annual RNG capacity of 2.5 billion ft3 (0.8 TWh). The three initial projects are currently under construction in Wisconsin and Virginia, each with a unit capacity of nearly 0.25 billion ft3 (75 GWh) of RNG per year.

Beyond these projects, the partners will consider investing together in a potential pipeline of about 60 projects across the country for a total capacity of 15 billion ft3/y (5 TWh).

BlackRock’s Diversified Infrastructure business acquired Massachusetts-based Vanguard Renewables in 2022, in a deal reportedly valuing the company at $700 million with plans to invest up to another $1 billion to finance the company’s expansion.

“This exciting partnership brings together TotalEnergies’ global experience in scaling and operating renewable gas assets with Vanguard Renewables’ market-leading position in the U.S., extensive operational history and customer relationships, and robust project portfolio,” said Doug Vaccari, managing director, Diversified Infrastructure at BlackRock.