Vanguard Renewables has entered into a commercial partnership with the CMA CGM Group to supply renewable natural gas (RNG) for the decarbonisation of the shipping sector.
As part of the agreement, CMA CGM will take a minority stake in Vanguard Renewables through its energy fund, PULSE, securing long-term access to RNG from the company’s U.S. facilities. Vanguard said it will dedicate up to four projects to production for CMA CGM.
The announcement comes as the International Maritime Organization prepares to implement its Net-Zero Framework, requiring shipowners to reduce greenhouse gas emissions or face penalties if they exceed fuel intensity thresholds. CMA CGM has already invested in liquefied natural gas (LNG) vessels, which it views as a transitional solution towards bioLNG.
Vanguard Renewables uses anaerobic digesters to convert farm and organic waste into RNG. The company works with food and beverage manufacturers and retailers to divert waste away from landfills.
Michael O’Laughlin, chief executive of Vanguard Renewables, said: “We are thrilled to partner with CMA CGM, the third largest container shipping company in the world, in support of their decarbonisation 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.”
He added: “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, backing 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.”
Guggenheim Securities acted as financial adviser to Vanguard Renewables on the transaction.
