BlackRock Real Assets acquires Vanguard Renewables

Vanguard Renewables, a Massachusetts-based organics-to-renewable energy provider, announced that a fund managed by BlackRock Real Assets has acquired the company from Vision Ridge Partners.

BlackRock Real Assets will partner with Vanguard Renewables’ management team to build upon the company’s track record and drive its next phase of growth, including its plans to commission more than 100 anaerobic digesters to produce renewable natural gas across the country by 2026.

Since its founding by John Hanselman and Kevin Chase in 2014, Vanguard Renewables has worked to change the perception of U.S. food waste and how that waste can be recycled into renewable energy to benefit the planet. The company mitigates greenhouse gas 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 renewable natural gas and liquid low-carbon fertilizer. Vanguard Ag, developed in partnership with Dominion Energy in 2019, converts manure into renewable natural gas.

“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,” says Mark Florian, head of diversified infrastructure for 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. We look forward to partnering with Vanguard Renewables’ experienced management team to support the company’s strong growth momentum.”

Neil H. Smith, CEO of Vanguard Renewables, adds, “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.”

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.