Canadian midstream giant Enbridge Inc. is investing up to $100 million in the U.S. renewable natural gas (RNG) sector as part of its strategy to lower its carbon footprint.

The company is partnering with Vanguard Renewables, a developer of farm-based anaerobic digestion facilities that convert food waste and dairy manure into RNG. The agreement announced Tuesday calls for the development of eight facilities across the United States.

Enbridge’s investment would fund upgrading equipment to convert the farm-derived product into pipeline-quality RNG. It would also cover transportation and marketing services for the gas. Vanguard, meanwhile, would invest $200 million to build and operate the facilities in the Northeast, Southeast, and Midwest.

“As we think about energy...