Vanguard Renewables and CMA CGM Group enter strategic partnership

Under the terms of the agreement, CMA CGM will make a strategic minority investment in Vanguard Renewables through its energy fund PULSE, ensuring access to significant volumes of biomethane aka renewable natural gas (RNG), to be delivered on a long-term basis.

The agreement highlights the critical role that Vanguard’s RNG is poised to play in the decarbonization of the maritime industry.

Vanguard Renewables offers a leading network of solutions to divert organic waste from landfills and collaborates with food and beverage manufacturers and retailers seeking organic waste disposal options.

Aligned with IMO’s Net-zero Framework

Vanguard Renewables produces RNG through proprietary anaerobic digesters that are powered by farm and organic waste, and will dedicate up to four projects to CMA CGM production.

With this option, CMA CGM can access high-quality, low-carbon-intensity RNG produced by Vanguard Renewables’ large-scale facilities across the United States.

The company’s investment in Vanguard Renewables comes as the International Maritime Organization (IMO) recently announced its Net-zero Framework.

Under the draft regulations, shipowners must reduce greenhouse gas (GHG) emissions or face financial penalties if they exceed a GHG fuel intensity threshold.

This partnership highlights the potential of LNG vessels as a transitional solution toward bioLNG, playing an active role in advancing the decarbonization of the shipping industry.

Vanguard Renewables’ unique position as a producer of RNG from both dairy and food waste allows customers to optimize the cost of GHG abatement.

We are thrilled to partner with CMA CGM, the third largest container shipping company in the world, in support of their decarbonization objectives. We see this pioneering collaboration as a key step in supporting the maritime sector as the global industry takes a bold step toward improving emissions. Vanguard Renewables’ unique business model provides a blueprint for a truly circular solution that offers significant benefits for GHG emission reduction and diverting organic waste from landfills. With a national footprint, backed by BlackRock, and a proven ability to scale to meet the increasing demand of RNG globally, Vanguard Renewables is committed to providing a reliable clean fuel source for years to come, said Michael O’Laughlin, CEO of Vanguard Renewables.

Guggenheim Securities, LLC served as financial advisor to Vanguard Renewables in connection with this transaction.