Vanguard Renewables, a US leader in organics-to-renewable energy, has announced that a fund managed by BlackRock Real Assets has acquired the company from Vision Ridge Partners.
According to a statement, BlackRock Real Assets will partner with Vanguard Renewables’ management team to build upon the company’s market-leading track record and drive its next phase of growth, including its plans to commission more than 100 anaerobic digesters (AD) to produce renewable natural gas (RNG) across the country by 2026.
The value of the transaction has not been disclosed.
We are pleased to invest in Vanguard Renewables, a leading producer of renewable natural gas from agriculture and organic food waste in the U.S., supported by long-term contracts. 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. We look forward to partnering with Vanguard Renewables’ experienced management team to support the company’s strong growth momentum, said Mark Florian, Head of Diversified Infrastructure, BlackRock Real Assets.
Since its founding by John Hanselman and Kevin Chase in 2014, Vanguard Renewables has been changing the perception of US food waste and how that waste can be recycled into renewable energy to benefit the planet.
Today is the beginning of an exciting next chapter for Vanguard Renewables as we scale our Farm Powered program across the nation. We are thankful for the steadfast support of Vision Ridge over the past eight years and look forward to our new partnership with BlackRock Real Assets, one of the world’s most forward-thinking and environmentally-focused investors, as we continue to develop solutions to protect our planet, said Neil H. Smith, CEO at Vanguard Renewables.
Two business lines
The company mitigates greenhouse gas (GHG) emissions from food waste and cow manure through two distinct business lines: Vanguard Organics and Vanguard Ag.
Vanguard Organics’ Farm Powered anaerobic co-digestion process converts inedible food and beverage waste and dairy manure into RNG and liquid low-carbon fertilizer.
Vanguard Ag, developed in partnership with Dominion Energy in 2019, converts manure into RNG. This multi-year partnership is essential to Vanguard Ag’s growth and Dominion Energy’s commitment to further its Environmental, Social, and Governance (ESG) goals via significant investments in RNG projects.
Since our investment in Vanguard Renewables in 2014, we have worked closely with Neil, John, Kevin, and the entire team to enable them to grow the company from its modest beginnings into the national leader in the development of organics-to-renewable energy projects. We are proud to have helped build Vanguard Renewables into an unmatched RNG platform pioneering a decarbonizing pathway in the U.S. while generating strong returns for Vision Ridge investors, and are pleased to transition ownership to a likeminded investor, BlackRock Real Assetscommented George Polk, partner at Vision Ridge Partners.
Onpeak Capital LLC served as the exclusive financial adviser to Vanguard Renewables. Evercore served as exclusive financial adviser and Simpson Thacher, & Bartlett served as legal counsel to BlackRock Real Assets. Ropes & Gray LLP served as legal counsel to Vision Ridge Partners.
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, ended John Hanselman, Founder and Chief Strategy Officer at Vanguard Renewables.
