Sainsbury’s is investing £2m in a start-up company that produces energy from organic waste.

The supermarket is one of several investors contributing a combined £65m to Tamar Energy, which has plans for a network of 40 anaerobic digestion plants around the UK to generate 100MW of green electricity over the next five years.

As part of the deal, Sainsbury’s will work with its suppliers to ensure that they have access to Tamar’s new plants.

“Sainsbury’s is the UK’s leading retail user of anaerobic digestion so we are delighted to be an investor and strategic partner of Tamar,” said Sainsbury’s chief executive Justin King.

“With the support of our suppliers we are very confident that this new venture will be a success, helping build Tamar into the UK’s leading green energy company.”