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TotalEnergies and Vanguard Renewables, a US farm-based organics-to-renewable natural gas (RNG) producer, have signed an agreement to create an equally owned joint venture to develop, build, and operate Farm-Powered RNG projects in the US.
TotalEnergies and Vanguard Renewables will construct 10 RNG projects over the next 12 months, with a total annual RNG capacity of 2.5 Bcf (0.8 TWh). Currently, the three initial projects in this agreement are under construction in Wisconsin and Virginia, each with a unit capacity of nearly 0.25 Bcf (75 GWh) of RNG per year.
The partners plan to invest in a potential pipeline of about 60 projects across the country, with a total annual capacity of 15 Bcf (5TWh).
“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 decarbonize their energy supply,” said Olivier Guerrini, Vice President of Biogas at TotalEnergies. “This joint venture is a new step for TotalEnergies in achieving its objective to produce 10 TWh of renewable natural gas by 2030.”
The projects are based on a model of recovering waste materials from the food and beverage industries, supplemented with dairy manure from dairy farms. Anaerobic digesters will be built on the dairy farms to recover and manage the digestate (a byproduct of the anaerobic digestion process) as a low-carbon and nutrient-dense fertilizer.
To feed its digesters, Vanguard Renewables has established a network of food industry brands across the US and the Farm Powered Strategic Alliance. Alliance members receive access to recycling their organic waste generated from manufacturing or retail activities as well as the opportunity to purchase the renewable energy generated at a Vanguard Renewables facility.
The joint venture will benefit from the expertise of both companies:
Vanguard Renewables will contribute its ready-to-build projects at scale to the joint venture and manage feedstock supply, assets, operations, and RNG sales.
TotalEnergies will bring its industrial expertise to the joint venture, providing technical support on the design and engineering of the facilities and the plant’s operational performance.
TotalEnergies and Vanguard Renewables will market the RNG through long-term purchase agreements with buyers engaged in decarbonizing their industrial processes.
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The post TotalEnergies and Vanguard Renewables to Invest in 60 Farm-Based Organics-to-RNG Production Facilities Across the US appeared first on Energy News Beat.
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