The Butterkist Popcorn maker said the system, which was installed last week at its Pontefract factory last month and will eventually be rolled out across its other six sites, would help it save 630 tonnes of carbon a year.
Tangerine has worked with energy company Ener-G on the system as part of its commitment to carbon reduction and claimed it was almost twice as efficient as conventional power generators.
Tangerine is the largest independent sugar confectionery manufacturer in the UK, with seven production sites employing around 1,500 staff.
Over the past three years, the company has increased its annual turnover from £40m to £150m. It owns brands including Barratt, Lion, Mojo and Wilkinson's.