ENGIE and CVE Biogaz have signed a 15-year biomethane purchase agreement based on the French Biogas Production Certificates (Certificats de Production de Biogaz – CPB) mechanism. The contract covers the entire annual output from the Ludres methanisation unit, located in the Meurthe-et-Moselle department. The unit, scheduled to start operations in January 2027, will inject 31GWh/year of biomethane into the network to supply ENGIE’s industrial and tertiary clients.
A local project backed by public actors
The project is supported by the Greater Nancy Metropolitan Area, the Ludres municipality, the Grand Est Region and the French Agency for Ecological Transition (ADEME). It will process 33,000 tonnes of biowaste per year, mainly from households, collective catering, and the local agri-food industry. This waste recovery will also produce 33,000 tonnes of organic fertilisers for 2,600 hectares of farmland located within 20 kilometres of the site.
The CPB mechanism as a new contractual lever
Established as an off-budget regulatory tool, the CPB mechanism allows biomethane producers to obtain additional revenue outside of regulated feed-in tariffs. Each megawatt-hour injected into the grid generates a certificate registered on the European Energy Exchange (EEX). From 2026, gas suppliers will be required to return a defined number of certificates to the State, proportional to their residential and tertiary sales, to meet biomethane incorporation targets.
A first BPA contract under the CPB framework
This contract between ENGIE and CVE Biogaz is the first Biomethane Purchase Agreement (BPA) concluded under the CPB framework. It reflects the intention of both parties to structure the emerging unsubsidised biomethane market. By securing this production in advance, ENGIE anticipates regulatory obligations and strengthens its renewable gas supply at a competitive cost.
Growth prospects for CVE Biogaz
For CVE Biogaz, this agreement confirms its ability to operate in the over-the-counter market and to adapt its business model to evolving regulatory frameworks. The Ludres site, compliant with the European RED II directive on bioenergy sustainability, highlights the integration of local agricultural and agri-food sectors into a circular model. The contract also secures long-term revenues in a developing market.
“The signing of this first BPA under the CPB mechanism with ENGIE, for our flagship Ludres project, demonstrates the relevance of our long-term partnership,” said Arnaud Bossis, Chief Executive Officer of CVE Biogaz.
