Milton Keynes based waste and recycling company Shanks Group (LSE: SKS) has signed a Power Purchase Agreement with UK based retailer Marks & Spencer (M&S) to supply it with the total renewable energy output of its anaerobic digestion (AD) plant in Cumbernauld, Glasgow - a joint-venture with Energen Biogas.
Shanks explained that M&S (LSE: MKS) sends food waste to the 60,000 tonne per year plant, where it is converted into biogas and used for renewable energy generation and digestate for use as a nutrient-rich soil conditioner.
According to the waste company the new agreement will see M&S directly purchase approximately 19,000 MWh per year of electricity from the AD plant - the equivalent energy used to power 33 M&S Simply Food stores - and helping to close the loop for its food waste.
The operator added that around 10% of the facilities power is used on-site to keep the plant running.
Giacinto Patellaro, head of Energy Supply & Risk at M&S, explained that the Cumbernauld facility is helping M&S to maintain two of the targets for its sustainability programme, Plan A - to procure 100% renewable electricity and send zero waste to landfill.
Shanks said that it is currently strengthening its market position in organics, where it has over one million tonnes of treatment capacity across Europe.