Big Banks Bet on Renewable Gas With $180M Deal

A $180M debt deal highlights growing lender confidence in renewable natural gas, pushing developers to scale projects and secure long term feedstock

15 Dec 2025

A $180m debt financing for US renewable natural gas projects is signalling rising lender confidence in a sector that has long struggled to attract large-scale institutional capital.

Waga Energy, a French developer specialising in landfill-based RNG, has secured senior debt to fund the construction and early operation of multiple sites across the US. RNG is produced by capturing methane from waste sources such as landfills and upgrading it into pipeline-quality fuel.

The financing, backed by Crédit Agricole and HSBC, is among the largest debt deals completed in the US biogas market. The size and structure mark a shift for a sector that has typically relied on grants, tax incentives and smaller, project-level loans.

The involvement of two large international banks suggests lenders are increasingly comfortable with the sector’s risk profile. Developers and financiers point to more predictable revenue streams, supported by long-term offtake contracts and policy frameworks that reward methane capture and low-carbon fuel production.

Waga Energy said the funding would allow projects to move through construction and commissioning more quickly, while meeting the technical and operational standards required by institutional lenders. Company executives have described the transaction as a milestone for the US renewable gas market.

Broader market conditions are also supporting the flow of capital. Utilities, corporations and governments are increasing demand for low-carbon fuels as they work towards climate targets. In the US, federal and state programmes that value emissions reductions have helped clarify project economics and reduce uncertainty for lenders.

Analysts say RNG is increasingly viewed as a near-term option for cutting emissions from waste and other hard-to-abate sectors, rather than a niche technology. That perception has improved its standing with long-term investors seeking stable, infrastructure-like returns.

The deal is likely to sharpen competition among developers. Projects with proven technology, strong operating records and secure access to landfill gas are better placed to attract large financings, while smaller or less established players may find capital harder to secure.

As institutional lenders deepen their exposure, the US RNG market is showing signs of maturation, with scale, performance and feedstock security becoming more decisive in shaping future growth.