Engie, Waga Energy sign RNG contract
29 May 2024
13-year agreement called longest BPA in France
Waga Energy has signed a 13-year contract to supply Engie with renewable natural gas (RNG) produced at the Veolia site in Claye-Souilly near Paris.
The contract is the longest biomethane production agreement (BPA) signed to date in France, the companies said.
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 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 their commitment to reducing the environmental impact of their activities and the carbon footprint of their 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 ISCC1 certification.
Veolia’s site, one of the largest RNG production units in France, it produces up to 120 GWh of RNG each year, equivalent to the consumption of 20,000 households.