Vanguard Renewables, a U.S.-based developer of food and dairy waste-to-renewable energy projects announced today that it has been acquired by the Real Assets unit of investment giant BlackRock from sustainability-focused real asset investor Vision Ridge Partners

According to the Wall Street Journal, citing a person familiar with the company, the deal valued Vanguard Renewables at $700 million, and BlackRock plans to invest up to another $1 billion to finance the company’s expansion.

Founded in 2014, Vanguard Renewables mitigates greenhouse gas emissions (GHG) from food waste and cow manure through its Vanguard Organics and Vanguard AG business lines. Vanguard Organics’ anaerobic codigestion process turns inedible food and beverage waste and dairy manure into renewable gas and liquid low-carbon fertilizer. Vanguard AG converts manure into renewable natural gas.

Neil H. Smith, Chief Executive Officer at Vanguard Renewables, said:

“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.”

The companies stated that they will partner to drive Vanguard Renewables’ next phase of growth, including the company’s plans to commission more than 100 anaerobic digesters to produce renewable natural gas across the U.S. by 2026.

Mark Florian, Head of Diversified Infrastructure, BlackRock Real Assets, said:

“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.”