• Veolia, Waga Energy, and ENGIE collaborate to boost France's renewable natural gas industry

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Fuel for Thought

Veolia, Waga Energy, and ENGIE collaborate to boost France's renewable natural gas industry

May 31 2024

As of May 1, 2024, Waga Energy began selling Renewable Natural Gas (RNG) produced at Veolia's Val Pôle in Claye-Souilly to ENGIE under a ground-breaking Biomethane Purchase Agreement (BPA). This 13-year contract, the longest BPA signed in France to date, marks a significant milestone for the French RNG industry.

In response to the increasing demand for local, low-carbon energy sources, Veolia, a leader in bio energies, Waga Energy, a global expert in RNG production from landfills, and ENGIE, a world leader in low-carbon energy and services, have forged a unique partnership. This collaboration represents a major advancement 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. Using its patented WAGABOX® technology, Waga Energy converts this biogas into RNG. Initially, this RNG was sold to ENGIE under a government-subsidised feed-in tariff. However, the new BPA, effective May 1, 2024, values RNG at a higher price than the subsidised rate, enabling Waga Energy to secure long-term financing for its RNG production unit through loans from CIC and Arkéa Banque Entreprises et Institutionnels.

Through this agreement, ENGIE will market unsubsidised RNG to its customers, allowing them to reduce their environmental impact and carbon footprint. The green value of this renewable gas is bolstered by the resale of Guarantees of Origin (GO) and Proof of Sustainability (PoS) certificates, issued as part of ISCC1 certification.

Veolia's Claye-Souilly site houses one of France's largest RNG production units, with an annual capacity of 120 GWh, equivalent to the consumption of about 20,000 households. Its operation helps avoid the emission of approximately 20,000 tonnes of CO2eq by reducing reliance on fossil natural gas.

Estelle Brachlianoff, CEO of Veolia, commented: "Veolia is a key player in bioenergy production, generating 1.6 terawatt-hours of biogas from waste anaerobic digestion in France alone. This partnership with Waga Energy and ENGIE supports the development of a robust green gas production industry at the European level, crucial for ecological transformation. It aligns perfectly with our GreenUp strategic plan to accelerate the deployment of local, low-carbon green energy."

Miya Paolucci, member of ENGIE's Global Energy Management & Sales Executive Committee, added: "Veolia and Waga Energy are excellent industrial partners who, like ENGIE, are committed to developing RNG as a renewable, local, and sovereign energy, which is vital for the energy transition. This BPA supports ENGIE's goal of supplying 30 TWh of RNG per year to our customers by 2030."

Mathieu Lefebvre, CEO of Waga Energy, stated: "The signing of this 13-year BPA with ENGIE is a first of its kind in France. The efficiency of WAGABOX® technology and its ability to produce RNG at competitive prices from large-capacity landfills like Veolia's Val Pôle in Claye-Souilly have enabled us to reach an agreement that benefits all stakeholders without relying on state-subsidised tariffs. We are delighted with this significant milestone in the renewable gas sector, resulting from close collaboration with Veolia and ENGIE, and we thank CIC and Arkea Banque Entreprises et Institutionnels for their continued support."

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