ENGIE has signed a 10-year biomethane purchase agreement with PepsiCo UK, marking a major step toward decarbonizing the food and beverage sector. The agreement will see ENGIE develop an anaerobic digestion plant in Northern England, supplying approximately 60 GWh per year of biomethane to PepsiCo’s supply chain starting in 2027.

Touted as the first of its kind for the UK food and drink industry and PepsiCo’s first biomethane agreement across Europe, the Middle East, and Africa, the partnership is expected to help reduce PepsiCo UK’s emissions by over 10,900 metric tons annually.

Biomethane is a 100% renewable alternative to natural gas, produced from the anaerobic digestion of organic waste and residues.

The initiative underscores growing momentum for clean, homegrown energy in the UK, aligning with government ambitions for net zero.