ENGIE signs landmark 10-year biomethane purchase agreement with PepsiCo UK

• ENGIE takes final investment decision on a new biomethane facility in the North of England, backed by a long-term biomethane purchasing agreement (BPA) with PepsiCo UK
• UK’s first food and drink industry BPA expected to help reduce PepsiCo UK’s emissions by over 10,900 tonnes a year
• New ENGIE plant will see up to £70m invested into local community

ENGIE, a leading global energy transition utility, has today announced a 10-year biomethane purchase agreement (BPA) with PepsiCo UK, helping the business progress further towards its decarbonisation ambitions.

The BPA – the first of its kind for the UK food and drink industry and a first for PepsiCo across EMEA – will see ENGIE build a new anaerobic digestion (AD) plant and increase its portfolio of biomethane plants in the country, delivering more homegrown green gas and supporting efficient decarbonisation of UK industry.

Under the unique agreement, which begins in 2027, 60 GWh of biomethane will be generated via a mass balance approach to help decarbonise PepsiCo UK’s supply chain on an annual basis, equivalent to the gas consumption of 5,000 homes. The move is anticipated to help reduce PepsiCo UK’s emissions by over 10,900 tonnes a year.[1]

ENGIE already injects over 210 GWh of biomethane per year into the UK gas network from its 4 operational AD plants located in the southwest of England and supplies business customers who want to decarbonise with a suite of tailored green gas solutions from its Supply and Energy Management business.

ENGIE has a track record of working with local communities, and all our AD plants are fed by locally sourced, sustainable feedstock notably from agricultural waste and rotational crops. ENGIE works in partnership with farmers to offer them a regular source of income and provides them with digestate, a rich, organic soil enhancer that’s a natural byproduct of the AD process – supporting circular economy in the community.

ENGIE UK CEO Miya Paolucci said: “ENGIE is a global leader in power and gas purchase agreements, and our strength lies in our unique ability to leverage our integrated portfolio and deliver exactly what customers need. We’re proud advocates of biomethane and are actively investing in projects which drive the energy transition, decarbonise our customers and support the move to clean energy.”

Sian Hamson, Sustainability Senior Manager, PepsiCo UK said: “As part of our PepsiCo Positive (pep+) ambitions, reducing our greenhouse gas emissions remains a key priority within our UK operations. As a low carbon, domestically produced energy source, biomethane will be a key lever in our broader decarbonisation strategy and we’re proud to be partnering with ENGIE as they build this facility and drive additional biogas into the UK network.”

Lord Whitehead, Minister for Energy Security and Net Zero, said: “This £70 million investment in clean energy will drive growth across the North of England. Biomethane production and partnerships between companies such as ENGIE and PepsiCo show that industry is backing this government’s mission for clean, homegrown energy.”

Biomethane is a 100% renewable alternative to natural gas, produced from the fermentation of agricultural waste and residues, and made of the exact same molecule.  Its use therefore doesn’t require any technical upgrades of installations or industrial processes for the user. It is an important enabler of the energy transition as it reduces carbon emissions by at least 80% compared to natural gas – based on life cycle analysis – while also improving air quality.

ENGIE already owns and operates 42 biomethane production sites with a total capacity over 1.2 TWh per year across Europe, where it has ambitions to produce 10 TWh, and supplies over 7 TWh of green gas solutions to its customers with an ambition to increase it to 30TWh by 2030. In the UK, the expansion plan includes multiple new biomethane greenfield new-to-Earth developments and new infrastructure at existing sites.

[1] Compared to a 2022 baseline

About ENGIE

ENGIE is a major player in the energy transition, whose purpose is to accelerate the transition towards a carbon-neutral economy. With 98,000 employees in 30 countries, the Group covers the entire energy value chain, from production to infrastructures and sales. ENGIE combines complementary activities: renewable electricity and green gas production, flexibility assets (notably batteries), gas and electricity transmission and distribution networks, local energy infrastructures (heating and cooling networks) and the supply of energy to individuals, local authorities and businesses. Every year, ENGIE invests more than €10 billion to drive forward the energy transition and achieve its net-zero carbon goal by 2045.

About ENGIE in the UK

In the UK, with 1,300 employees, ENGIE owns and operates a large portfolio of renewable and flexible storage assets, across electrons and molecules, including one of the largest pumped-storage hydro plants in Europe. Our JV company Ocean Winds is one of the largest offshore wind generators in Scotland with 1832 MW of operating capacity. We supply +17,000 business customers with electricity and gas and accompany them in their decarbonisation journey. Over its 20 years of operations in the UK, ENGIE has unlocked billions of pounds into the country’s energy transition.

ENGIE Financials

Turnover in 2024: €73.8 billion. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Euro 100, MSCI Europe) and non-financial indices (DJSI World, Euronext Vigeo Eiris – Europe 120 / France 20, MSCI EMU ESG screened, MSCI EUROPE ESG Universal Select, Stoxx Europe 600 ESG-X).

About PepsiCo

PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated nearly $92 billion in net revenue in 2024, driven by a complementary beverage and convenient foods portfolio that includes Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo’s product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.

Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that puts sustainability and human capital at the center of how we will create value and growth by operating within planetary boundaries and inspiring positive change for planet and people. For more information, visit www.pepsico.com, and follow on X (Twitter), Instagram, Facebook, and LinkedIn @PepsiCo.