Veolia, Waga, Engie join to push RNG development in France
Bioenergy developer Veolia, Waga Energy, which operates renewable natural gas (RNG) facilities in four countries, and French utility ENGIE said May 28 they had partnered to advance RNG developments 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, which Waga uses to produce RNG using its patented WAGABOX® technology. This RNG was initially sold to ENGIE under the feed-in tariff subsidised by the French government.
But on May 1 this year, a new 13-year biomethane purchase agreement (BPA) came into effect, allowing Waga Energy to sell the RNG from Claye Souilly at a price higher than the subsidised price. The BPA is the longest signed in France to date and allows Waga to retain the financing of the RNG production unit through a long-term loan from the CIC and Arkea Banque Entreprises et Institutionnels banks.
“The performance of the WAGABOX® technology and its ability to produce RNG at competitive prices on large-capacity landfills such as Veolia’s Val Pole 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-subsidised tariff,” Wega Energy CEO Mathieu Lefebvre said. “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.”
Under the agreement, ENGIE will be able to market unsubsidised RNG to its customers, enabling them to demonstrate a reduction in the environmental impact of their activities and the carbon footprint of their products. The green value of the RNG produced and sold under the BPA is underpinned by the resale of guarantees of origin and proof of sustainability certificates issued as part of ISCC certification.
The ISCC (International Sustainability & Carbon Certification) label proves that a renewable natural gas production facility complies with the sustainability and greenhouse gas emission reduction criteria defined by the European RED II directive.
“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, a member of ENGIE’s Global Energy Management & Sales Executive Committee. “The signing of this new BPA contributes to ENGIE’s goal to supply 30 TWh of RNG/year to our customers by 2030.”
Claye Souilly is home to one of France’s largest RNG production units, with an annual capacity of 120 GWh/year of RNG, equivalent to the consumption of around 20,000 households. Its commissioning avoids the emission of around 20,000 tonnes of CO2-equivalent by reducing the use of fossil natural gas.
“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,” Veolia CEO Estelle Brachlianoff said. “This is perfectly aligned with our GreenUp strategic plan, which aims to accelerate the deployment of local, low-carbon green energy.”