A UK dairy in Yorkshire has signed an agreement with a local biogas plant to supply it with a by-product of cheese-making that would be turned into thermal power to heat homes in the area.

The Wensleydale Creamery, which produces the Yorkshire Wensleydale cheese, makes 4,000 tons of cheese every year at its dairy in Hawes in the heart of the Yorkshire Dales.

The company has struck a deal with specialist environment fund manager Iona Capital, under which an Iona biogas plant will produce more than 10,000 MWh of energy per year from whey—a by-product of cheese making, Wensleydale Creamery said on Monday.

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Under the deal, Wensleydale Creamery will provide Iona Capital’s Leeming Biogas plant in North Yorkshire with leftover whey from the process of cheese making. The plant will process and turn the whey into “green gas” via anaerobic digestion that will produce thermal power sufficient to heat 800 homes a year.

Iona Capital already has nine such renewable energy plants in Yorkshire, which save the equivalent of 37,300 tons of carbon dioxide (CO2) each year.

“Once we have converted the cheese by-product supplied by Wensleydale into sustainable green gas, we can feed what’s left at the end of the process onto neighbouring farmland to improve local topsoil quality. This shows the real impact of the circular economy and the part intelligent investment can play in reducing our CO2 emissions,” Mike Dunn, co-founder of Iona, said in a statement.

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“The whole process of converting local milk to premium cheese and then deriving environmental and economic benefit from the natural by-products is an essential part of our business plan as a proud rural business. It is only possible as a result of significant and continued investments in our Wensleydale Creamery at Hawes and to sign this agreement and have the opportunity to convert a valuable by-product of cheese making into energy that will power hundreds of homes across the region will be fantastic for everyone involved,” Wensleydale Creamery’s managing director, David Hartley, said.

This article was originally published on Oilprice.com