From Wasted Food to Carbon-Neutral Fuel

Enbridge has partnered with Divert Inc. to combat food waste and reduce greenhouse gas emissions by converting wasted food into renewable natural gas (RNG).

Rhea-AI Summary

Enbridge has partnered with Divert Inc. to combat food waste and reduce greenhouse gas emissions by converting wasted food into renewable natural gas (RNG). Announced on March 2, 2023, this collaboration aims to address the staggering 100 million tons of wasted food generated annually in the U.S., which contributes to 10% of global greenhouse gas emissions. Enbridge will acquire a 10% stake in Divert for $80 million, with plans for further investments exceeding $1 billion in wasted-food-to-RNG projects. This partnership aligns with Enbridge's energy transition strategy and is expected to close by March 2023.

Positive

• Partnership with Divert Inc. to develop renewable natural gas from wasted food.
• Acquisition of 10% stake in Divert for $80 million, indicating strong commitment to sustainable initiatives.
• Potential for over $1 billion in new capital growth from wasted-food-to-RNG projects.

Negative

• None.

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NORTHAMPTON, MA / ACCESSWIRE / March 2, 2023 / Enbridge

An image from Divert Inc.'s facility at Freetown, MA. Divert has been at the forefront of efforts to prevent wasted food across the United States since 2007.

The numbers are concerning, if not staggering.

In the United States, alone, more than 100 million tons of wasted food are generated annually, with about 50% going to landfills or incinerators.

As wasted food decomposes, it creates methane. Estimates, in fact, identify wasted food as creating about 10% of greenhouse gas emissions globally.

Enbridge and Divert Inc. have unveiled plans to join forces and develop more facilities that turn wasted food into renewable natural gas (RNG). It's a historic collaboration for Enbridge that aims to help tackle both important issues-wasted food and greenhouse gas emissions.

Concord, MA-based Divert, founded in 2007, creates advanced technologies and sustainable infrastructure to eliminate wasted food. Their solutions prevent waste by maximizing the freshness of food, recovering edible food to serve communities in need, and by converting wasted food into renewable energy.

The synergies are obvious. In short, Enbridge sees growing RNG supply as a key pillar to its energy transition strategy and Divert, with its technical and logistical expertise that includes connections to RNG feedstock from within the food sector, is expanding into RNG.

Details of the new arrangement, discussed by Enbridge at its annual investor conference today in Toronto, include the following: Enbridge is acquiring a 10% stake in Divert Inc., which describes itself as an impact technology company on a mission to Protect the Value of Food™ and is expanding into RNG to help major food retailers manage their wasted food more sustainably, for US$80 million. The agreement includes further investment opportunities to develop wasted-food-to-RNG projects across the U.S. providing line of sight to greater than $1 billion of new capital growth, which will be underpinned by long-term take-or-pay contracts. Enbridge expects to close the transaction in March 2023.

Divert also issued a news release about the partnership and in it, Caitlin Tessin, Enbridge's Vice President of Strategy and Market Innovation, offered comments from the Enbridge perspective. "Divert has emerged as a leader in creatively managing wasted food and our partnership aligns with Enbridge's priorities in pioneering RNG as an effective solution to achieve net-zero greenhouse gas emissions," Tessin said.

Said Ryan Begin, CEO and co-founder of Divert: "The infrastructure development agreement with Enbridge marks a major turning point in the battle against the wasted food crisis. For 16 years, Divert has been at the forefront of efforts to prevent wasted food nationwide and this new funding will serve as a catalyst to address this pervasive problem at scale. As one of North America's largest energy infrastructure companies, Enbridge will play a critical role in the continued development of our transformative technologies and infrastructure."

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SOURCE: Enbridge

View source version on accesswire.com:
https://www.accesswire.com/741693/From-Wasted-Food-to-Carbon-Neutral-Fuel

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What was announced on March 2, 2023, regarding Enbridge and Divert Inc.?

Enbridge announced a partnership with Divert Inc. to convert wasted food into renewable natural gas, focusing on combating food waste and greenhouse gas emissions.

How much did Enbridge invest in Divert Inc.?

Enbridge invested $80 million to acquire a 10% stake in Divert Inc.

What are the future investment plans associated with Enbridge's partnership with Divert?

Enbridge plans further investments that could exceed $1 billion in developing projects to convert wasted food into renewable natural gas.

Why is the partnership between Enbridge and Divert significant for the environment?

The partnership aims to address the issue of over 100 million tons of wasted food in the U.S., which contributes significantly to greenhouse gas emissions.

When is the transaction between Enbridge and Divert expected to close?

The transaction is expected to close by March 2023.