The U.S. alone creates over 70 million tons of food waste every single year, but its landfills are quickly running out of space, and throwing organic waste in the trash creates methane emissions. Companies are searching for new ways to actually put that waste to good use.

Vanguard Renewables announced an agreement to buy Generate Upcycle’s North American operations, merging two industry leaders to build a massive network that turns food waste into renewable natural gas across the U.S. and Canada.

Food Waste to Renewable Fuel

Photo: Pawel Michalowski/Shutterstock

Instead of food siting in a landfill, these companies use a process called anaerobic digestion. The process breaks down organic materials and turns them into low-carbon energy and other helpful resources. Demand for this type of fuel is rising across transportation and other markets as companies try to meet their sustainability goals.

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“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.”

Growing the Network

Once the deal closes, Vanguard Renewables will add Generate Upcycle’s facilities in upstate New York and Ontario to its network, bringing its total up to 19 locations.

The processing power is expected to nearly double. The deal adds about 565,000 tons of food waste processing and 1.1 billion cubic feet of renewable natural gas production every year. Additionally, it gives Vanguard a clear entry into Canada’s Clean Fuel Regulations market.

“Generate Upcycle has built one of the strongest food waste-based anaerobic digestion operations in North America,” Bill Caesar, President of Generate Upcycle, added. “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.”