Casella Waste Systems, a regional solid waste, recycling and resource management services company based in Rutland, Vermont, and Waga Energy, a France-based expert in the production of renewable natural gas (RNG) from landfills, have signed a commercial agreement to develop RNG facilities at three Casella landfills.
As part of the agreement, Waga Energy will deploy the capital required to fully fund construction of the projects and will own and operate the RNG infrastructure. Casella and Waga Energy will share in the revenue generated from the RNG facilities once operational.
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Because of the time required for permitting and construction, commercial operations are expected to start in about 24 months. The initial production across these three sites is expected to total approximately 1.3 million metric million British thermal units (MMBtu) per year of RNG. Casella will receive from Waga Energy a royalty stream to supply landfill gas to the RNG facilities, and the projects may be entitled to investment tax credits as part of the Inflation Reduction Act.
“Working with Waga Energy is a great opportunity for our company to further enhance our strategy around resource management and sustainability,” Casella Waste Systems Chairman and CEO John W. Casella says. “We have been impressed by Waga Energy’s innovation and technology platform and believe that they are a strong partner to help develop RNG capacity at these three facilities.”
Waga Energy purifies landfill gas through its patented WagaBox. The company usually finances, builds and operates its WagaBox units under long-term contracts with landfill operators for the supply of raw gas and generates income by selling the RNG it generated. Waga Energy operates 17 WagaBox units in France, Spain and Canada, representing an installed capacity of 640 gigawatt hours per year, and 15 more units are under construction in France, Canada and the United States.
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