Veolia, Waga Energy and ENGIE collaborate for RNG in France
A Biomethane Purchase Agreement (BPA), valuing RNG at a higher price than the subsidized price, came into force on May 1, 2024, for a period of 13 years. This is the longest BPA signed in France to date.
Renewable energy conglomerates Veolia, Waga Energy and ENGIE have created entered in a partnership to take a significant step forward in the development of the renewable natural gas (RNG) or biogas industry in France. The collaboration is to respond to the growing need to develop local low-carbon energies.
Waga Energy is a global expert in the production of Renewable Natural Gas (RNG) from landfills.
Since March 2022, Veolia has been supplying Waga Energy with biogas from the Claye Souilly landfill site in the Île-de-France region to produce RNG using its patented WAGABOX technology. This RNG was initially sold to ENGIE under the feed-in tariff subsidized by the French government.
A Biomethane Purchase Agreement (BPA), valuing RNG at a higher price than the subsidized price, came into force on May 1, 2024, for a period of 13 years. This is the longest BPA signed in France to date, which enabled Waga Energy to retain the financing of the RNG production unit through a long-term loan from the CIC and Arkéa Banque Entreprises et Institutionnels banks.
Through this agreement, ENGIE will market unsubsidized RNG to its customers, who will thus be able to demonstrate a reduction in the environmental impact of their activities and the carbon footprint of their products. The green value of this renewable gas is underpinned by the resale of Guarantees of Origin (GO) and Proof of Sustainability (PoS) certificates issued as part of ISCC1 certification.
Estelle Brachlianoff, CEO of Veolia, held, “Veolia is a key player in the production of bioenergy, already producing 1.6 terawatt-hours of biogas from waste anaerobic digestion in France alone. Through this partnership with Waga Energy and ENGIE, we are contributing to the development of a genuine green gas production industry at the European level, essential for the ecological transformation. This is perfectly aligned with our GreenUp strategic plan, which aims to accelerate the deployment of local, low-carbon green energy.”
Miya Paolucci, from ENGIE mentioned, “The signing of this new BPA contributes to ENGIE’s goal to supply 30 TWh of RNG per year to our customers by 2030”.
Mathieu Lefebvre, CEO of Waga Energy, added, “The signing of this 13-year BPA with ENGIE is a first of its kind in France! The performance of the WAGABOX technology and its ability to produce RNG at competitive prices on large-capacity landfills such as Veolia’s Val Pôle in Claye-Souilly, have enabled us to conclude an agreement that creates value for all stakeholders involved in the project, without calling on the state-subsidized tariff.”
By 2024, France had 652 biomethane production sites injecting biomethane into its gas networks. These sites had a combined capacity of over 11 TWh per year, which is comparable to the production capacity of two nuclear power stations.
