Veolia, ENGIE and Waga Energy enter “unprecedented” RNG partnership in France
The RNG has been sold under a Biomethane Purchase Agreement (BPA) without recourse to the feed-in tariff subsidised by the French government.
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 subsidised by the French government.
A Biomethane Purchase Agreement (BPA), valuing RNG at a higher price than the subsidised price, came into force on 1 May, for a period of 13 years. This is the longest BPA signed in France to date, and it 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 unsubsidised RNG to its customers, who will 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 ISCC certification.
Veolia's Claye Souilly site is home to one of France's largest RNG production units, with an annual capacity of 120 GWh of RNG per year, equivalent to the consumption of around 20,000 households.
Its commissioning avoids the emission of around 20,000 tonnes 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".