France-headed landfill gas to biomethane technology provider Waga Energy SA has announced that it has signed a Biomethane Purchase Agreement (BPA) with compatriot energy major ENGIE SA for the sale of biomethane aka renewable natural gas (RNG) produced at the Veolia site in Claye-Souilly, outside Paris. This thirteen-year contract is the longest BPA signed to date in France and marks a significant step forward in the development of local, low-carbon energies.
Since March 2022, Waga Energy has been upgrading the landfill gas (LFG) produced on Veolia’s Claye-Souilly site into RNG, which is directly injected into the local gas network to be used by homes and businesses in the region.
Enable financing
Previously, the RNG was sold to ENGIE under a feed-in tariff subsidized by the French government.
The new contract, which went into effect on May 1, 2024, values the RNG at a higher price than the subsidized tariff.
This enables Waga Energy to secure financing for the production unit through a long-term credit facility with the banks CIC and Arkéa Banque Entreprises et Institutionnels.
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 has enabled us to conclude an agreement that creates value for all stakeholders involved in the project, without calling on the state-subsidized tariff. We are delighted with this major first in the world of renewable gas, the result of close collaboration with the Veolia and ENGIE teams, and would like to thank CIC and Arkea Banque Entreprises et Institutionnels for their renewed confidence in this new stage of the project, Mathieu Lefebvre, CEO of Waga Energy.
Market unsubsidized RNG
This agreement enables ENGIE to market unsubsidized RNG to its customers, offering a unique opportunity to demonstrate its commitment to reducing the environmental impact of its activities and the carbon footprint of its products.
The green value of this renewable gas is enhanced by the resale of Guarantees of Origin (GOs) and Proof of Sustainability (PoS) certificates issued as part of the International Sustainability and Carbon Certification (ISCC).
Veolia and Waga Energy are excellent industrial partners who, like ENGIE, are driven by the desire to develop RNG, a renewable, local and sovereign energy, which is one of the pillars of the energy transition. The signing of this new BPA contributes to ENGIE’s goal to supply 30 TWh of RNG per year to our customers by 2030, said Miya Paolucci, Member of ENGIE’s Global Energy Management & Sales Executive Committee.
Veolia’s Claye-Souilly site is one of the largest RNG production units in France and produces up to 120 GWh of RNG each year, equivalent to the consumption of 20,000 households.
Its commissioning avoids the emission of around 20,000 tonnes of carbon dioxide equivalents (CO2eq), by reducing the use of fossil gas.
Veolia is a key player in the production of bioenergy, already producing 1.6 TWh (per annum) 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 ecological transformation. This is perfectly aligned with our GreenUp strategic plan, which aims to accelerate the deployment of local, low-carbon green energy, said Estelle Brachlianoff, CEO of Veolia.
