In the United States (US), food waste recycling technology company Divert Inc. has announced a strategic partnership with Mitsubishi Corporation (MC), which will serve as the lead investor in Divert’s Series C financing.
According to a statement, this partnership is a first-of-its-kind model for the organics resource recovery industry, reflecting the demonstrated success of Divert’s commercially and operationally proven platform and elevating the company’s valuation to over US$1 billion.
The partnership comes at a time when regulatory pressure, decarbonization goals, food supply chain inefficiencies, and rising disposal and energy costs are converging.
As demand accelerates for infrastructure that can recover value from food that can no longer be consumed, MC’s expertise will play a key role in supporting Divert’s continued growth.
As part of the partnership, MC has made an equity investment in Divert and, in connection with that investment, has been granted preferred offtake rights for renewable natural gas (RNG).
Access global markets
Together, Divert and MC are also establishing a new pathway to bring the benefits of RNG, aka biomethane, into Japan and other global markets through MC’s global energy platform.
This partnership reflects the maturity of Divert’s platform and the value we deliver to customers every day. We have built a proven model that solves real operating challenges for food retailers and manufacturers, and creates value through food donations, renewable energy production, and nutrient recovery. MC recognized Divert as a disciplined infrastructure platform with proven results, strong operating capability, and a clear path to continued scale, said Ryan Begin, CEO and co-founder of Divert.
Divert’s platform sits at the intersection of food, logistics, agriculture, energy, and carbon markets, positioning the company to reduce waste at its source and maximize value from the material it receives.
The company’s model supports major food retailers and manufacturers in achieving compliance, reducing waste, and improving operational efficiency.
Leverage energy market expertise
MC leverages more than 50 years of expertise across energy markets to deliver solutions that support a stable energy supply and advance the transition to a carbon-neutral society.
Given MC’s experience in developing and operating gas-related businesses in the United States, the partnership creates a strong foundation for collaboration and synergy with Divert.
We are focused on building businesses that strengthen resource resilience, support a stable energy supply, and create long-term value through practical decarbonization. Divert has built a compelling platform at the convergence of food, energy, and circularity. It’s proven operating model, strong customer value proposition, and ability to recover value from discarded resources made this a strategic opportunity for us, said Shinya Naka, SVP, Division COO, Europe & Next-Generation Energy Div., Energy & Power Solution Group.
The partnership marks an important step not only for Divert but also for the broader organics resource recovery industry.
By pairing strategic equity capital with RNG offtake, Divert and MC are advancing a new model for financing and scaling circular food system infrastructure – one that links source reduction, domestic energy production, and decarbonization in a way that has not previously been executed at scale.
Divert is a portfolio company of Ara Partners, a global private equity, infrastructure, and energy firm focused on decarbonizing the industrial economy.
