Pharmaceutical firm AstraZeneca and Future Biogas open sustainable energy plant at Gonerby Moor, near Grantham

A biogas plant costing “tens of millions of pounds” has opened today (Thursday) — and bosses hope it can support the sustainable production of medicines.

AstraZeneca and Future Biogas have been working together for more than a decade to develop the plant in Gonerby Moor, near Grantham.

The plant, which will operate around the clock, will generate enough biomethane to heat the equivalent of over 8,000 homes a year. Biomethane is clean heat which will be used in all of AstraZeneca’s research and development and manufacturing operations in the UK, supporting sustainable production of medicines.

AstraZeneca, a Cambridge-based biopharmaceutical company which develops medicines that are used worldwide, says the plant is a step towards its goal to use 100 per cent renewable energy for its own operations by the end of 2025, and represents an investment running into tens of millions of pounds.

Liz Chatwin, vice-president of global sustainability and safety, health and environment at AstraZeneca, said: “We are committed to climate action and innovation in sustainability to decarbonise healthcare.

“By investing in unsubsidised biomethane capacity, we’re proud to contribute to reducing carbon emissions while strengthening the UK’s renewable energy infrastructure.”

The plant, which was given planning permission in 2016, also features innovative carbon capture technology, which collects carbon dioxide (CO2) produced during biomethane generation. This CO2 can either be reused in other industries or in the longer-term it can be permanently stored underground, creating a carbon removal from the atmosphere.

Crops supplied to Moor Bioenergy will be sourced within 15 miles of the plant with local farmers supported to drive sustainable farming practices. Five-year feedstock contracts will offer farmers greater financial security, helping to mitigate the challenges of fluctuating food crop prices and climate change. Feedstock will be certified by International Sustainability and Carbon Certification (ISCC) – an independent body which verifies that crops are traceable and grown in accordance with strict environmental criteria.

Philipp Lukas, CEO of Future Biogas, said: "With the launch of Moor Bioenergy – the UK’s first unsubsidised biomethane facility in partnership with AstraZeneca – we are proving that innovation and bold vision can drive real change.

“This project is not only about generating clean, renewable gas, it’s a powerful call to all companies to decarbonise industrial gas and heat use."

The Moor Bioenergy plant will supply 100GWh of renewable energy every year to AstraZeneca UK, the equivalent to 20 per cent of the company’s total global gas consumption. The firm says this renewable energy will replace the equivalent of 18,000 tonnes of carbon dioxide emissions from fossil gas.

Bioenergy crops grown for Future Biogas absorb CO2 from the atmosphere when they are growing. Once harvested and stored, the energy crops are fed into anaerobic digestion tanks where bacteria break down the organic matter in the absence of oxygen, releasing biogas - free of CO2.

The firm said the residue is an organic fertiliser, which in conjunction with changes to the farming rotation and the introduction or expansion of sustainable farming practices, helps accelerate soil carbon capture.