Waga Energy secures €100mn green loan for international expansion

French renewable natural gas (RNG) company Waga Energy has signed a €100mn ($108.36mn) corporate syndicated green loan with a consortium of five banking groups to expand internationally, particularly in the US, the company announced on July 8. The loan has a three-year maturity, extendable to five years.

“This loan labelled as green will be used to finance projects that make a substantial contribution to climate change mitigation, in compliance with the European green taxonomy, and in line with decarbonisation challenges,” Waga said. 

The transaction was largely oversubscribed by a pool of five institutions: Groupe BPCE, Groupe Credit Agricole, Arkea Banque Entreprises & Institutionnels, BNP Paribas, and Societe Generale.

Waga produces RNG, also known as biomethane, by upgrading landfill gas using its patented purification technology called Wagabox. The RNG produced is injected directly into the gas distribution networks that supply individuals and businesses, providing a substitute for natural gas.

In May, the company inaugurated its Wagabox RNG production unit at the Steuben County Landfill in Bath, New York. Last month, Waga entered into a long-term agreement with industrial gas producer OCI Global to upgrade landfill gas to RNG at the City of Beaumont Landfill in Texas.