BlackRock acquires leading US renewable gas producer

BlackRock has acquired a leading US renewable gas producer Vanguard Renewable, betting on what it describes as an attractive and fast-growing market.

The world's largest asset manager acquired Massachusetts-based Vanguard, which works with dairy farmers and good companies to convert food waste and cow manure into an energy source, from Vision Ridge Partners. BlackRock plans to work with Vanguard's management to take the company forward into its next phase of growth, which includes plans to commission more than 100 anaerobic digests to produce renewable gas across the US by 2026.

"Renewable natural gas is an attractive and fast-growing market that provides decarbonisation solutions for both the provider of the waste, as well as the natural gas consumer," BlackRock Real Asset's head of diversified infrastructure, Mark Florian, said in a statement on July 20.

John Hanselman, who founded Vanguard in 2014 and now serves as its chief strategy officier, said he was 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 realise a future where waste is a resource for renewable energy generation and regenerative agriculture practice."

Wall Street Journal reported the value of the deal at $700mn.