INTERVIEW: Waga Energy poised for growth in US RNG market, VP says

French renewable gas developer Waga Energy is growing its footprint in the US RNG market, Tanguy Largeau, Commercial VP at Waga Energy told Platts in a recent interview.

"We've signed 13 projects in the US," Largeau said. "We've already brought two online with two more coming online in the coming months, and 11 more coming online in the next couple of years."

A key driver of this growth is Waga Energy's patented technology, the WAGABOX, which upgrades landfill gas of varying quality into pipeline-quality RNG. "Waga Energy patented, developed, and brought to market our WAGABOX, which is our unique technology... for upgrading landfill gas of all quality into pipeline quality RNG," Largeau said.

The US presents a significant opportunity for RNG production, primarily due to the availability of landfill gas and established gas infrastructure. "One of the key markets for RNG was clearly in the US because of landfill gas availability and the gas infrastructure," he said. "Our mission in the US is to become a clear leader in landfill gas to RNG production."

Expansion beyond US

While the US remains a key focus for Waga Energy, the company is also looking at other expansion opportunities in the Americas. Earlier this year, Waga Energy launched its Brazilian subsidiary, Waga Energy Brazil, its first foray into Latin America. Similarly, the company has multiple landfill RNG projects in Canada, including in Victoria Island and Quebec.

"We are looking at some opportunities in Central and South America with great potential," Largeau said, although "there is still some work to be done on regulation there."

Following the International Maritime Organization's announcement to delay a decision on the net zero framework, it has remained interested in the RNG to Bio-LNG space. "One of our main focuses is on offtake and what are the avenues for the potential of decarbonizing the maritime industry, creates a massive and immediate opportunity for the RNG industry," Largeau said. "It's definitely something we've looked at. Although the IMO Net Zero Framework discussions have now been postponed to 2026, we remain very optimistic on the opportunity RNG is offering for maritime decarbonization in the future."

The potential for RNG beyond the US is supported by unique opportunities emerging in Central America. "In some of these [Central American] areas, the fossil natural gas price is close to production cost for RNG so there's opportunities there that are also quite unique." Largeau said.

"We see opportunities in Canada and the US," Largeau said. "There's definitely going to be continued opportunity in all provinces in Canada and also opportunity for some of the US-produced RNG, so we absolutely are looking at those locations."

Challenges ahead

However, regulatory timelines pose challenges. Largeau highlighted the importance of California's regulatory framework, saying, "One of the challenges is regulation and the timeliness of the regulation. There's this great regulation for the procurement of RNG by gas utilities in California where our industry is working with regulators to ensure that they're going to be including landfill gas as an eligible feedstock for producing RNG."

He pointed to SB-1440, which would enable California utilities to purchase significant quantities of in-state produced RNG. "It's a huge potential for the state of California and for gas users in [the state] to buy landfill gas which is the lowest cost molecule for producing RNG."

Another hurdle is gas interconnection, which can impact project feasibility due to high costs. "There's quite a dense gas infrastructure in the US, the cost to interconnect is sometimes what's impacting projects the most," Largeau said. "The infrastructure to connect to the grid is sometimes what breaks those projects, so there's a lot of work to be done in our industry and the gas industry to try to lower those capital costs which are impacting so many projects."

To address these challenges, Waga Energy is increasingly focused on streamlining processes and finding cost-effective solutions for project interconnection. Efforts include taking on more responsibility for construction and proposing standardized approaches to reduce expenses. "We are taking over the construction of the pipeline and the metering station as well as proposing standard designs and injection specifications to help reduce interconnection costs where possible," Largeau said. "We are also actively proposing standard interconnection agreements to gas utilities to help fast track the development of interconnections."

With a growing portfolio of RNG projects in both the US and internationally, Waga sees significant potential for further domestic expansion. Legislative support and ongoing landfill methane collection efforts are creating new opportunities for the industry. "We just opened up a new facility in Iowa and this landfill that wasn't a candidate because of its size for RNG projects we were able to develop and bring into operation," Largeau said. "This RNG is flowing through the local pipeline and it's helping decarbonize transportation and industrial use."

Platts, part of S&P Global Energy, assessed the landfill RNG premium (California) at $26.73/MMBtu on Dec. 12, down 10 cents over the day. RNG outside of California was assessed 12 cents lower on the day at $19.63/MMBtu.