ENGIE, a French major player in energy transition, has signed a 10-year Biomethane Purchase Agreement (BPA) with PepsiCo UK to supply 60 gigawatt-hours (GWh) of renewable gas annually, a deal valued at approximately £70 million ($94 million).
The project is the first of its kind for the UK food and beverage industry. It represents a regional first for PepsiCo across Europe, the Middle East, and Africa (EMEA), according to an ENGIE press release.
Under the agreement, which is expected to commence in 2027, ENGIE will construct a new anaerobic digestion (AD) plant. This facility will convert organic waste and residues into biomethane, a 100% renewable alternative to natural gas.
The initiative is projected to reduce PepsiCo UK’s carbon emissions by over 10,900 tonnes per year (tpy). The supply volume is equivalent to the average annual gas consumption of over 5,000 households.
“This new project will contribute to our ambitious goal of reaching 10 terawatt-hours (TWh) of annual biomethane production capacity in Europe,” said Cécile Prévieu, ENGIE’s Executive Vice President in charge of Networks activities.
ENGIE currently operates 1.2 TWh of annual biomethane production capacity across 42 sites in France, England, Belgium, and the Netherlands. The Group remains committed to a significant scale-up, aiming to increase its green gas supply from the current 7 TWh to 30 TWh by 2030.
