New Record Biomethane Purchase Agreement In France
Waga Energy has signed a biomethane purchase agreement (BPA) with Engie for the sale of renewable natural gas (RNG) produced at the Veolia site in Claye-Souilly (near Paris). This 13-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 produced on Veolia’s site into RNG, which is directly injected into the local gas network to be used by homes and businesses in the region. Previously, the RNG was sold to Engie under a feed-in tariff subsidized by the French government.
The new contract, which came into effect on May 1, 2024, values the biomethane 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.
This agreement enables Engie to market unsubsidized biomethane to its customers, offering an 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 and Proof of Sustainability certificates issued as part of ISCC certification.
Veolia’s site, one of the largest RNG production units in France, produces up to 120 GWh of RNG each year, equivalent to the consumption of 20,000 households. Its commissioning avoids the emissions of around 20,000 tons (18,144 tonnes) of carbon dioxide equivalent, by reducing the use of fossil natural gas.
“Veolia is a key player in the production of bioenergy, already producing 1.6 TWh of biogas from waste anaerobic digestion in France alone,” said Estelle Brachlianoff, chief executive officer (CEO) of Veolia. “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 that aims to accelerate the deployment of local, low-carbon green energy.”
“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,” said Miya Paolucci, member of Engie’s global energy management and sales executive committee. “The signing of this new BPA contributes to Engie’s goal to supply 30 TWh of RNG per year to our customers by 2030.”
“The signing of this 13-year BPA with Engie is a first of its kind in France,” said Mathieu Lefebvre, CEO of Waga Energy. “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. 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.”
