Waga Energy and Engie sign France’s longest biomethane contract

Waga Energy and Engie sign a thirteen-year contract for the sale of biomethane, setting a new standard in the French energy market.

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Waga Energy Engie Contrat biométhane

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Waga Energy recently signed a Biomethane Purchase Agreement (BPA) with Engie for the sale of biomethane produced at Veolia’s Claye-Souilly site (Seine-et-Marne). The thirteen-year contract is the longest BPA ever signed in France. It represents a major step forward for the local and low-carbon energy market, underlining the commitment of the parties involved in the energy transition. Since March 2022, Waga Energy has been transforming biogas from the Claye-Souilly landfill into biomethane, which is injected directly into the local gas grid to supply homes and businesses. Previously, biomethane was sold to Engie at a rate subsidized by the French government.

Financial and commercial security

The new contract, in force since May 1, 2024, values biomethane at a price higher than the subsidized rate. This has enabled Waga Energy to secure financing for the production unit through a long-term loan from the CIC and Arkéa Banque Entreprises et Institutionnels banks. This agreement enables Engie to market unsubsidized biomethane to its customers, providing an opportunity to diversify and secure revenues. The value of this renewable gas is enhanced by the resale of guarantees of origin and Proof of Sustainability (PoS) certificates issued under the International Sustainability & Carbon Certification (ISCC) scheme.

Production capacity and market opportunities

Veolia’s Claye-Souilly site, one of the largest biomethane production units in France, has an annual capacity of 120 GWh of biomethane, equivalent to the consumption of 20,000 households. Its commissioning contributes to reducing the use of fossil natural gas, thus presenting an economical and strategic alternative. Estelle Brachlianoff, CEO of Veolia, states:

“Veolia is a major player in bioenergy production. With this collaboration with Waga Energy and ENGIE, we are strengthening our position in the European green gas market.”

Outlook for the future

Miya Paolucci, member of ENGIE’s Global Energy Management & Sales Executive Committee, explains:

“The signing of this new BPA is in line with our ambitions to supply 30 TWh of biomethane per year to our customers by 2030.”

This perspective is in line with ENGIE’s strategic objectives for sustainable development. Mathieu Lefebvre, President and CEO of Waga Energy, adds:

“The performance of WAGABOX technology and its ability to produce biomethane at a competitive price have enabled us to conclude this agreement that is advantageous for all stakeholders, without relying on state subsidies.”

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