BlackRock buys renewables energy provider

BlackRock Real Assets has acquired Vanguard Renewables, a US organics-to-renewable energy provider, from Vision Ridge Partners.

Over the past eight years, sustainable investment manager Vision Ridge has built Vanguard Renewables into a renewable natural gas (RNG) platform pioneering a decarbonizing pathway in the US, while generating returns for Vision Ridge investors.

The new partnership with BlackRock Real Assets is set to drive Vanguard Renewables’ next phase of growth, including plans to commission more than 100 anaerobic digesters to produce renewable natural gas across the US by 2026.

The consideration in the deal has not been disclosed.

Vanguard Renewables mitigates greenhouse gas emissions from food waste and cow manure through Vanguard Organics and Vanguard Ag.

Vanguard Organics’ Farm Powered anaerobic codigestion process converts inedible food and beverage waste and dairy manure into renewable natural gas and liquid low-carbon fertilizer, while Vanguard Ag converts manure into renewable natural gas.

The new partnership is key to Vanguard Ag’s growth and Dominion Energy’s commitment to further its ESG goals through investments in renewable natural gas projects.

According to Mark Florian, head of diversified infrastructure, BlackRock Real Assets, renewable natural gas is an attractive and fast-growing market that provides decarbonization solutions for both the provider of the waste, as well as the natural gas consumer.

Florian said: “We are pleased to invest in Vanguard Renewables, a leading producer of renewable natural gas from agriculture and organic food waste in the US, supported by long-term contracts.”

John Hanselman, founder and chief strategy officer at Vanguard Renewables, concluded: “I am immensely proud to have helped build a company from the ground up into a national organic waste-to-renewable energy leader. Vanguard Renewables’ mission has always been to help America realize a future where waste is a resource for renewable energy generation and regenerative agriculture practice.”