TotalEnergies SE has inked an agreement with BlackRock Inc.-backed Vanguard Renewables to advance nearly a dozen U.S. renewable natural gas (RNG) projects over the next year with total annual production capacity of 2.5 Bcf.
Boston-based Vanguard, funded by BlackRock’s Diversified Infrastructure segment, plans initially to develop 10 projects. The first three from the joint venture (JV) are under construction in Wisconsin and Virginia and could have a total capacity of about 750 MMcf/year.
“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 TotalEnergies’ Olivier Guerrini, vice president for Biogas.
RNG would be generated in part from waste from a partnership that Vanguard has with the Farm Powered Strategic Alliance (FPSA).
The 19-member alliance was formed in 2020 by Vanguard and Dairy Farmers of America, Starbucks Corp. and Unilever plc. Members would have priority access to production from the projects, according to the JV. AstraZeneca plc, also a FPSA member, last year partnered with Vanguard to provide up to 650,000 MMBtu by 2026 to power U.S. medicine manufacturing sites.
TotalEnergies has set a goal to increase its use of recycled feedstocks to more than 75% in 2024.
The largest U.S. LNG trader is aiming to have about 50% of its energy sales from natural gas, including liquefied natural gas, by 2030. Renewable electricity generation and biofuels – including hydrogen, sustainable aviation fuel, renewable diesel and RNG – would comprise 20% of energy sales.
While “demand is strong,” according to the supermajor, “access to feedstocks remains a barrier to growth.”
TotalEnergies noted that the JV would have the option to invest in another 60 projects in the United States with a total capacity of 5 TWh, or about 15 Bcf/y. Vanguard operates 17 facilities with more than 1.5 Bcf/y of RNG capacity. It plans to commission more than 100 RNG projects before 2029.
TotalEnergies over the last few years has partnered with several biofuel producers, including RNG distributor Clean Energy Fuels Corp. and France-based Veolia Environnement SA.
