HomeNewsVeolia, Waga Energy and ENGIE collaborate to develop renewable natural gas industry in France

Veolia, Waga Energy and ENGIE collaborate to develop renewable natural gas industry in France

5/28/2024

With the growing need to develop local, low-carbon energies, Veolia, a leader in bioenergies, Waga Energy, a global expert in the production of renewable natural gas (RNG) from landfills, and ENGIE, a world leader in low-carbon energy and services, have created an unprecedented partnership to take a significant step forward in the development of the RNG industry in France.

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 yr. 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 be able to market unsubsidized RNG to its customers, which 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.

1 The ISCC (International Sustainability & Carbon Certification) label proves that a RNG production facility complies with the sustainability and greenhouse gas emissions reduction criteria defined by the European RED II directive.

Veolia's Claye Souilly site is home to one of France's largest RNG production units, with an annual capacity of 120 GWh/yr of RNG, equivalent to the consumption of around 20,000 households. Its commissioning avoids the emission of around 20,000 metric t of CO2eq by reducing the use of fossil natural gas.

Estelle Brachlianoff, CEO of Veolia: "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, member of ENGIE's Global Energy Management & Sales Executive Committee: "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."

Mathieu Lefebvre, Chief Executive Officer of Waga Energy: "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. 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."

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