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Future Biogas: Pioneering sustainable growth in the renewable energy sector

Founded in 2010 by Philipp Lukas and acquired by 3i Infrastructure plc in 2023, Future Biogas is setting a strong foundation for long-term sustainable growth.

Future Biogas operates 12 Anaerobic Digestion (AD) plants located primarily across the East of England, which produce the renewable gas, biomethane, from farmers’ crops.

Steven Beveridge, Group CFO since July 2023, shares how the 170-employee business is creating a blueprint for sustainable growth in a rapidly changing market.

Articulating the value of sustainability for corporate partners

In a landscape where large corporations, particularly those with strong consumer-facing brands, are actively pursuing ambitious carbon reduction targets, Future Biogas are delivering unsubsidised renewable gas directly to corporate clients.

In December 2023, UK pharmaceutical company AstraZeneca signed a 15-year gas sale agreement (GSA) with Future Biogas to help cut its Scope 1 emissions. In the arrangement, 100,000 MWh of home-grown biomethane will be sleeved from Future Biogas’ new AD plant directly to AstraZeneca’s UK sites via the national gas grid.

Steven describes how, historically, government subsidies have underpinned the AD sector in the UK. As these subsidy regimes expire, Future Biogas has pioneered what it’s calling Project Carbon Harvest, the development of new unsubsidised plants producing biomethane from locally grown energy crops using regenerative practices. “There’s no government support whatsoever. The AstraZeneca deal is the first of its kind in the UK, and that's the template we're rolling out going forward.” 

“Additionality is absolutely key for our clients,” Steven notes. “Corporates are seeking carbon reduction strategies that are not at risk of subsequently being labelled greenwashing. Our unsubsidised AD plant solution is powering the transition to net zero.” 

Building a circular, sustainable supply chain

Future Biogas has developed an extensive farming network in the UK, working with over 400 farms that supply crops to the AD plants. This is managed by their dedicated farming team. 

Bioenergy cropping presents a potential opportunity for farmers to increase diversity within their rotation as other crops have become more agronomically challenging for them to grow. As farming in the UK transitions to a post-subsidy era and looks towards net zero, Steven is certain that AD represents an increasingly attractive opportunity for growers.

This partnership with UK farmers promotes regenerative and sustainable practices, such as crop rotation and soil health management, which helps reduce carbon emissions from farms. The anaerobic digestion process also co-creates a natural, nutrient-rich byproduct - a sustainable fertiliser or digestate - which is returned to the farms, enhancing crop yields, creating a sustainable circular model and supporting food security in the UK.

Could this be the future of energy solutions?

Steven says biomethane has a critical part to play in the energy transition story. For some industries, he notes, electrification is not an option or represents a partial solution. Meanwhile, alternatives such as hydrogen for heating are not yet established in the UK with further work required to understand feasibility, costs, and convenience.

Steven points to AstraZeneca as a great example. “They followed a strategy where they first sought to reduce their overall energy demand, then electrify processes as far as possible, and finally adopt alternative fuels like biomethane for processes where electrification is non-viable.” 

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Building a pipeline of talent

Future Biogas works with a multi-skilled team that includes farming experts, engineers, biologists, policy experts, operatives, developers and commercial teams. Over the last 14 years, the business has cultivated the expertise needed to support its multi-faceted operations as well as address new market opportunities, creating a thriving AD platform in the UK.

Amid a fierce battle for talent where large corporations in the sector often lure skilled engineers and technicians away, Steven emphasises the importance of retention. Training programmes, such as apprenticeships and internships, help retain talent and develop expertise internally. “We do our best to hold on to them and having a good overall benefits package alongside a clear sustainability mission helps in competing for skilled workers.”

Fostering a purpose-driven culture

Sustainability is a powerful motivator for today’s workforce, particularly among younger employees passionate about climate action. Steven says: “Joiners regularly cite this as one of the top reasons for joining Future Biogas.” Developing a company culture focused on sustainability, with clear messages around climate impact and purpose, is essential for attracting and retaining talent he feels.

The business is creating a compelling narrative such as reducing emissions and contributing to the energy transition, which could act as a powerful retention tool, allowing team members to feel that their work is making a genuine difference.

Getting fit for the future

Andy O’Hare, the bank’s Head of Natural Resources, Renewables and Utilities, says: “The team at Future Biogas demonstrates what sustainability-focused businesses can accomplish by seizing opportunities emerging from the shift to a low-carbon economy.

“They are a prime example of how keeping a forward-looking approach and continuously adapting and evolving can position a business for lasting success.

“Future Biogas demonstrates several positive indicators of being Future Fit, including a strong focus on supply chain relationships and leveraging the rising demand for sustainability to attract and retain talent.

“We’re very happy to partner with Future Biogas and believe other businesses can gain valuable insights from their approach to building a foundation for long-term success.”

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