TotalEnergies and BlackRock-managed fund portfolio company Vanguard Renewables, have entered into an agreement to create a 50/50 joint venture to develop, build and operate on-farm biomethane projects in the United States.
The pair will develop ten biomethane projects, with a combined annual capacity of 0.8TWh, with the aim of starting construction within the next 12 months.
Of these, the first three projects, with a capacity of nearly 75GWh per year each, have already entered the construction phase in the states of Wisconsin and Virginia.
In addition to these first ten projects, the partners plan to co-invest in a pipeline of around sixty potential projects across the country, for a total capacity of 5TWh per year.
Olivier Guerrini, senior vice president, Biogas, TotalEnergies, said: “We are delighted to partner with BlackRock and its company Vanguard Renewables to accelerate the production of biomethane from food and beverage waste in the United States.
“By expanding into this fast-growing market, this joint venture will create value for both our companies while benefiting the agri-food sector and providing a decarbonization solution that is immediately available to industrial players looking to reduce their emissions.
“This partnership marks a further step towards TotalEnergies’ goal of producing 10 TWh of biomethane by 2030.”
Headquartered near Boston, Massachusetts, Vanguard Renewables operates 17 biomethane production units from organic waste with a capacity of more than 440GWh, and plans to commission more than 100 facilities by the end of 2028.
In July 2022, Vanguard Renewables was acquired by BlackRock through its diversified infrastructure fund.
Neil H Smith, chief executive of Vanguard Renewables, said: “We are delighted to welcome TotalEnergies as a strategic partner to accelerate the development of anaerobic digestion projects in the United States.
“This collaboration, which combines our expertise with that of TotalEnergies in the development of major energy projects, security, and international partnerships, confirms Vanguard’s position as a leader in biomethane in the United States.
“These ten anaerobic digestion projects undertaken with TotalEnergies further strengthen our commitment and our ability to accomplish our mission: to exploit the potential of waste for the decarbonization of our planet.”