ENGIE has signed a 10-year biomethane purchase agreement with PepsiCo UK, under which biomethane will be supplied from a new anaerobic digestion facility to support emissions reductions across PepsiCo’s UK supply chain.
The agreement, due to begin in 2027, will see 60 GWh of biomethane generated annually using a mass balance approach. ENGIE said this volume is equivalent to the gas consumption of around 5,000 homes and is expected to reduce PepsiCo UK’s emissions by more than 10,900 tonnes a year.
As part of the arrangement, ENGIE will build a new anaerobic digestion plant and expand its biomethane portfolio in the UK. The company currently injects more than 210 GWh of biomethane into the UK gas network each year from four operational plants in south-west England.
ENGIE UK chief executive Miya Paolucci said: “ENGIE is a global leader in power and gas purchase agreements, and our strength lies in our ability to leverage our integrated portfolio to meet customer needs. We are investing in biomethane projects that support the energy transition and help decarbonise customers.”
Sian Hamson, sustainability senior manager at PepsiCo UK, said biomethane would play a role in the company’s UK decarbonisation strategy. “As a low-carbon, domestically produced energy source, biomethane will be a key lever in reducing our greenhouse gas emissions, and we are partnering with ENGIE as this facility is developed and additional biogas is added to the UK network,” she said.
The investment associated with the project totals £70 million, according to the government. Lord Whitehead, Minister for Energy Security and Net Zero, said: “This £70 million investment in clean energy will drive growth across the North of England. Biomethane production and partnerships between companies such as ENGIE and PepsiCo show that industry is backing the government’s mission for clean, homegrown energy.”
Biomethane is produced from agricultural waste and residues and can be used as a direct substitute for natural gas without changes to existing infrastructure. ENGIE said it sources feedstock locally and works with farmers, supplying digestate from the process as a soil enhancer.
ENGIE operates 42 biomethane production sites across Europe with total capacity of more than 1.2 TWh per year, and has outlined plans to expand capacity further, including additional developments in the UK.
