Engie has announced a 10‑year contract to supply 60 GWh of biomethane annually to PepsiCo UK, a first of its kind in the UK food‑and‑beverage sector. The agreement, valued at roughly £70 million ($94 million), will begin in 2027 once Engie’s new anaerobic‑digestion plant in the North of England is operational.
The deal delivers a renewable energy source that can replace fossil‑fuel‑derived electricity, cutting PepsiCo UK’s carbon footprint by more than 10,900 tonnes of CO₂ each year—equivalent to the annual gas consumption of over 5,000 households. For Engie, the contract is a key milestone in its strategy to reach 10 TWh of annual biomethane production capacity across Europe, and it demonstrates the company’s ability to secure long‑term supply agreements with industrial clients.
PepsiCo’s sustainability agenda, branded ‘PepsiCo Positive’ (pep+), targets net‑zero emissions by 2040 and a 40 % absolute GHG reduction by 2030. The biomethane supply will directly support these goals by providing a low‑carbon, domestically produced energy source for its UK operations. “As part of our pep+ ambitions, reducing our greenhouse gas emissions remains a key priority within our UK operations,” said Sian Hamson, PepsiCo UK Sustainability Senior Manager. “Biomethane will be a key lever in our broader decarbonisation strategy.”
Engie’s Executive Vice President for Networks, Cécile Prévieu, highlighted the strategic importance of the deal: “This new project will contribute to our ambitious goal of reaching 10 TWh of annual biomethane production capacity in Europe. It illustrates ENGIE’s strategy to accelerate the development of biomethane for industry through long‑term purchase agreements, which are essential to Europe’s energy sovereignty and the decarbonisation of its economy.”
The partnership sets a precedent for other food and beverage firms in the UK to pursue similar renewable‑energy collaborations. It also aligns with the UK government’s clean‑energy agenda, as noted by Lord Whitehead, Minister for Energy Security and Net Zero, who said the £70 million investment will drive growth across the North of England and demonstrates industry backing for the government’s mission for clean, home‑grown energy.
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