Waga Energy Signs Longest Biomethane Purchase Agreement in France with Engie.
Waga Energy has recently finalized a private Biomethane Purchase Agreement (BPA) with Engie. This agreement covers the sale of biomethane produced at Veolia’s Claye-Souilly site in Seine-et-Marne.
Notably, this 13-year contract stands as the longest BPA signed in France to date, marking a significant stride in the local and low-carbon energy market and underscoring the commitment of all parties involved in the energy transition.
Transforming Biogas into Green Energy
Since March 2022, Waga Energy has been converting biogas from the Claye-Souilly waste storage center into biomethane. Operators then inject this biomethane directly into the local gas network, supplying both homes and businesses. Previously, Waga Energy sold the biomethane to Engie under a French government-subsidized tariff.
A New Era of Unsubsidized Biomethane
The new contract, effective from May 1, 2024, values biomethane at a price exceeding the subsidized tariff. This allows Waga Energy to secure financing for its production unit through a long-term loan with CIC and Arkéa Banque Entreprises et Institutionnels. Furthermore, it enables Engie to market unsubsidized biomethane to its customers, providing an opportunity for revenue diversification and security. The value of this renewable gas is further bolstered by the sale of origin guarantees and Proof of Sustainability (PoS) certificates issued under the International Sustainability & Carbon Certification (ISCC) scheme.
Production Capacity and Market Potential
Veolia’s Claye-Souilly site, one of the largest biomethane production units in France, boasts an annual capacity of 120 GWh of biomethane. This output is equivalent to the consumption of 20,000 households. Its operation contributes to the reduction of fossil-based natural gas usage, presenting an economical and strategic alternative. Estelle Brachlianoff, CEO of Veolia, highlights Veolia’s role as a major player in bioenergy production and this collaboration’s significance in strengthening their position in the European green gas market.
Miya Paolucci, a member of ENGIE’s “Global Energy Management & Sales” executive committee, emphasizes that this new BPA aligns with ENGIE’s ambitions to provide 30 TWh of biomethane per year to its customers by 2030. Mathieu Lefebvre, CEO of Waga Energy, adds that the performance of the WAGABOX technology and its ability to produce biomethane at competitive prices have been instrumental in securing this advantageous agreement for all stakeholders, independent of government subsidies.
Key Takeaways:
Longest BPA in France: This 13-year agreement sets a new precedent for long-term biomethane contracts.
Unsubsidized Biomethane: The deal marks a shift towards market-based pricing for renewable gas.
Major Players Unite: Waga Energy, Engie, and Veolia collaborate to advance the renewable energy market.