Massachusetts-based Vanguard Renewables works with dairy farmers and food companies to convert food waste and cow manure into an energy source

BlackRock Inc. BLK -2.02%decrease; red down pointing triangle is buying a company that turns food waste and cow manure into renewable natural gas, a deal that adds to momentum in the industry during the war in Ukraine, company officials said.

The world’s biggest asset manager is acquiring Vanguard Renewables, a Boston-area company that works with dairy farmers and food companies to produce renewable natural gas for utilities and energy firms such as Dominion Energy Inc. and Enbridge Inc. The transaction is valued at $700 million, and BlackRock could spend over $1 billion more in financing Vanguard Renewables’ expansion, a person familiar with the matter said.