Boston — Vanguard Renewables announced that it has signed an agreement to acquire Generate Upcycle’s North American operations, creating what the companies describe as North America’s largest food waste-to-renewable natural gas platform.
Upon closing, Generate Upcycle’s anaerobic digestion and advanced depackaging facilities in upstate New York and Ontario are expected to join Vanguard Renewables’ portfolio, bringing the combined network to 19 facilities across the United States and Canada.
The transaction is expected to nearly double Vanguard Renewables’ current operating capacity by adding about 565,000 tons of annual food waste processing capacity and 1.1 billion cubic feet of renewable natural gas production per year.
“Landfill diversion represents one of the largest opportunities in the resource recovery market, and scale and integration have become essential to realizing its full potential,” said Mike O’Laughlin, Chief Executive Officer of Vanguard Renewables. “By bringing together Vanguard Renewables and Generate Upcycle, we’re creating more recovery pathways for customers, expanding our presence across strategic growth markets in the Northeast and Canada, and providing more reliable, long-term solutions for organic material diversion.”
The companies said the deal reflects growing demand for alternatives to landfill disposal as organics diversion policies, corporate sustainability initiatives and demand for lower-carbon fuels expand.
Through anaerobic digestion, food and other organic waste can be converted into renewable natural gas and other useful products. The acquisition will also give Vanguard Renewables a presence in Canada’s Clean Fuel Regulations market.
Generate Upcycle contributes food waste recycling and renewable energy operations, while Vanguard Renewables operates an integrated model spanning feedstock sourcing, logistics, processing and commercialization.
“Generate Upcycle has built one of the strongest food waste-based anaerobic digestion operations in North America,” said Bill Caesar, President of Generate Upcycle. “By combining forces with Vanguard Renewables, we are creating a platform with the operational know-how and financial backing needed to support long-term growth and success.”
The combined company is expected to expand organics recycling and renewable natural gas production capacity while providing customers with greater geographic reach and processing options.
The transaction is expected to close Oct. 1, subject to customary closing conditions.
