ENGIE to supply biogas to PepsiCo for 10 years

ENGIE has announced that it signed an under which PepsiCo UK will purchase biogas for 10 years from it to further decarbonisation of business. To supply the biogas or biomethane, ENGIE will build a new anaerobic digestion plant and increase its portfolio of biomethane plants in the country.

ENGIE said that the biomethane purchase agreement (BPA) first of its kind for the UK food and drink industry and a first for PepsiCo across EMEA that will support efficient decarbonisation of UK industry.

The agreement begins in 2027 and 60 GWh of biomethane will be generated via a mass balance approach to help decarbonise PepsiCo UK’s supply chain on an annual basis, equivalent to the gas consumption of 5,000 homes. The move is anticipated to help reduce PepsiCo UK’s emissions by over 10,900 tonnes a year.

ENGIE UK CEO Miya Paolucci said, “ENGIE is a global leader in power and gas purchase agreements, and our strength lies in our unique ability to leverage our integrated portfolio and deliver exactly what customers need.”

Sian Hamson, Sustainability Senior Manager, PepsiCo UK, added, “As a low carbon, domestically produced energy source, biomethane will be a key lever in our broader decarbonisation strategy and we’re proud to be partnering with ENGIE as they build this facility and drive additional biogas into the UK network.”

Lord Whitehead, Minister for Energy Security and Net Zero, apprised, “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 this government’s mission for clean, homegrown energy.”

ENGIE already owns and operates 42 biomethane production sites with a total capacity over 1.2 TWh per year across Europe, where it has ambitions to produce 10 TWh, and supplies over 7 TWh of green gas solutions to its customers with an ambition to increase it to 30TWh by 2030. In the UK, the expansion plan includes multiple new biomethane greenfield new-to-Earth developments and new infrastructure at existing sites.