SmartestEnergy has signed a long-term biomethane offtake and environmental products agreement with marine renewable gas developer Zenco Group for a UK bioenergy facility expected to produce up to 420 GWh of renewable gas annually.
Under the agreement, SmartestEnergy will act as offtaker for the biomethane and exclusively market the Renewable Gas Guarantees of Origin (RGGOs) and associated environmental products from the plant. Commercial operations are currently scheduled to begin in 2028.
The facility will use established anaerobic digestion technology but with a distinctive feedstock approach. Zenco plans to integrate cultivated seaweed-based feedstock as production scales, with the plant scheduled to become the first AD facility to run fully on this feedstock. The company said seaweed grown at sea does not compete with food crops for land or fresh water, addressing a key challenge in scaling up UK bioenergy production.
The development will be delivered in two phases. The first will focus on biomethane production for grid injection, while the second will introduce renewable fuel production, allowing optimisation between biomethane and renewable fuels. Once fully developed, the project is expected to become one of the largest renewable gas and renewable fuels facilities in the UK.
Vishnu Aggarwal, vice president of global environmental markets trading at SmartestEnergy, said: "Our agreement with Zenco combines proven anaerobic digestion technology and a scalable feedstock for the future with our expertise in providing a commercial route to market. Energy attribute instruments such as Guarantees of Origin and Proof of Sustainability are becoming important tools for supporting decarbonisation claims, emissions reductions and regulatory compliance as businesses work towards net zero."
Sean McNeill, founder and chief executive of Zenco Group, said: "Our partnership with SmartestEnergy allows us to focus on what we do best, developing and producing defossilised energy and fuels from sustainable marine feedstocks, while entrusting the commercial route to market, energy trading and market optimisation to a partner with decades of experience."
The deal forms part of SmartestEnergy's strategy to build a portfolio of European gas purchase agreements covering both physical delivery of biomethane and associated guarantees of origin.
