Thursday, January 22, 2026

Engie signs first-ever biomethane deal with Pepsi UK

January 22, 2026

Engie announced on Wednesday that it had won a 10-year contract to supply biomethane to PepsiCo UK. This is the first?deal of its kind between a biomethane manufacturer and a?food?industry?player in Britain.

The utility company said that PepsiCo UK would buy 60 gigawatt-hours of biomethane per year from Engie’s newly built anaerobic digester in Northern England.

It is expected that the facility will start operating in the second half 2027, and it will supply renewable gas equal to the annual consumption for about 5,000 households.

According to the Department for Energy Security in Britain, the investment for this project is worth 70 million pounds (94?million).

On a conference call, Pierre Chambon (Engie's director of renewable gas in Europe) told journalists: "What's new about?this BPA? It's that it's directly related to the construction of a Biomethane Plant. This is a model we'd like to duplicate in England and in other countries."

Chambon stated that the company targets industrial clients who want to decarbonize but are unable to go completely electric.

He added: "This could include companies from the agrifood sector, like Pepsi. But also industrial companies, like glass, cement and steel producers."

Engie has a?biomethane production capacity of about 1.2 Terawatt Hours in Europe. It aims to produce 10 TWh per year and deliver 30 TWh green gas to its customers by 2030.

(source: Reuters)

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