ENGIE has signed a 10-year biomethane purchase agreement with PepsiCo UK. Under the agreement, ENGIE will construct a new anaerobic digestion facility in northern England with an annual biomethane production capacity of 60 GWh. All output from the plant will be contracted to PepsiCo through a mass balance mechanism, with deliveries scheduled to begin in 2027 once the facility becomes operational.
The contracted biomethane volume is equivalent to the annual gas consumption of more than 5,000 households. The supply is expected to offset around 10,900 tonnes of carbon emissions annually. The facility will rely on locally sourced, sustainable feedstock, primarily agricultural waste and rotation crops, and will generate digestate as a byproduct for use as an organic soil enhancer. Additionally, the agreement supports PepsiCo’s supply chain decarbonisation efforts through the use of renewable gas produced within the UK.
ENGIE currently operates four anaerobic digestion plants in southwest England, injecting more than 210 GWh of biomethane annually into the national gas network. Moreover, the company manages around 1.2 TWh of biomethane production capacity across 42 sites in France, England, Belgium, and the Netherlands, and supplies over 7 TWh of green gas solutions to customers.
