Revolutionizing Energy Procurement for a Sustainable Future
The Renewable Thermal Collaborative has unveiled a comprehensive case study shedding light on the groundbreaking partnership between AstraZeneca and Vanguard Renewables. This pioneering collaboration aims to deliver renewable natural gas (RNG) to all AstraZeneca sites in the United States by 2026, marking one of the largest RNG purchases in North America’s voluntary market.
Project Overview: A Bold Step Towards Sustainability
AstraZeneca, a global biopharmaceutical company, has joined forces with Vanguard Renewables, a leader in farm-based anaerobic digestion projects, through a 15-year agreement. This collaboration involves the procurement of RNG to meet nearly all of AstraZeneca’s gas demand at its U.S. research and manufacturing sites by the end of 2026. The ambitious goal is to deliver 650,000 MMBtu/year of RNG, equivalent to heating over 17,800 U.S. homes annually.
Transition to Renewable Energy: AstraZeneca’s Commitment
AstraZeneca’s move towards RNG aligns with its flagship Ambition Zero Carbon strategy, aiming to reduce GHG emissions from global operations by 98% by 2026. The company views RNG as a feasible option to decarbonize its U.S. footprint, ensuring a reliable supply while avoiding production disruptions and retrofitting existing infrastructure.
Key Achievements and Outcomes
The RNG contract structure mirrors a power purchase agreement (PPA), with Vanguard Renewables covering capital costs, and AstraZeneca committing to a fixed price per MMBtu for RNG deliveries over 15 years. This structure provides revenue certainty for Vanguard Renewables and supports AstraZeneca’s long-term off-take commitment. The companies employed rigorous GHG emissions accounting and carbon intensity evaluation, validating the strategy to build new digesters and produce RNG for decarbonization.
Path to a Greener Future
The successful collaboration between AstraZeneca and Vanguard Renewables sets a precedent for companies striving to decarbonize. AstraZeneca’s Senior Vice President, Andy Wirths, expressed excitement about being on the “front edge of innovation,” emphasizing the partnership’s role in paving the way for others to follow. The companies recently announced plans to expand their collaboration, further enhancing RNG generation and supply chain efficiency.
This transformative initiative not only propels AstraZeneca towards its renewable energy goals but also supports small family-owned farms, enriching local economies, improving waste handling practices, and curbing atmospheric methane emissions.
Source：businesswire.com
