France-headed landfill gas (LFG) to biomethane technology provider Waga Energy SA, and compatriot Meridiam, a global investment fund specializing in public infrastructure finance, has announced that the duo has obtained a non-recourse loan of EUR 10.4 million from BNP Paribas and Banque Populaire Grand Ouest to refinance four "WAGABOX" biomethane units located in France.
Waga Energy’s proprietary technology is the result of 10 years of research and development. It makes it possible to upgrade landfill gas (LFG) into grid compliant biomethane, also known as renewable natural gas (RNG).
According to Waga Energy, the refinancing of these four WAGABOX units will strengthen Waga Energy’s cash flow and enable further financing of new projects in Europe and North America. The deal underpins the company’s ability to rely on financial institutions to deploy its innovative landfill gas-to-biomethane technology.
The success of this refinancing operation demonstrates the finance community’s confidence in our business model and our technology. Our ability to raise bank debt to reduce the cost of project financing is a major factor in the competitiveness of the biomethane we produce, commented Marie-Amélie Richel, Administrative & Financial Director of Waga Energy.
The WAGABOX units are part of two special purpose vehicle (SPV) companies, one of which is jointly owned by Meridiam. These two companies signed a non-recourse credit agreement with the banks for EUR 10.4 million to repay the loans previously contracted with Waga Energy and Meridiam.
The SPV company jointly owned by Waga Energy and Meridiam hosts three RNG units, one of which is still under construction. The second SPV company hosts one unit and is 100 percent owned by Waga Energy.
When the final unit is commissioned, the projects will generate a total of 95 GWh of RNG per year and prevent the emission of 17 000 tonnes of carbon dioxide equivalents (CO2eq).
New projects in Europe and North America
Waga Energy currently operates ten WAGABOX units in France. Ten more projects are also under construction in France, Spain, and Canada. The Group plans to have 100 such units in operation worldwide by the end of 2026, to achieve a production capacity of around 4 TWh per year and avoid the emission of 700 000 tonnes of CO2eq per year.
This partnership with Waga Energy, which is entering a new phase with the mobilization of leading long-term banking partners, is a perfect illustration of our desire to bring technological solutions to service the energy transition. Fostering circular economy models is at the heart of our mission. We have supported Waga Energy for three years now, and we embrace this pioneering role in the production of biomethane and green gas, a sector in which we are now one of the main investors in France, said Julien Touati, Partner at Meridiam.