Brewer Adnams is set to provide enough gas to heat 235 homes a year by converting brewery and local food waste.
The Suffolk-based company has constructed the first UK anaerobic digestion plant to use such materials to create biomethane.
This will provide gas to use at the brewery and to inject into the National Grid.
It has teamed up with British Gas and the National Grid for the project and will start pumping renewable gas into the grid later this summer.
Chief executive Andy Wood said: "For a number of years now Adnams has been investing in ways to reduce our impact on the environment.
"The reality of being able to convert our own brewing waste and local food waste to power Adnams brewery and vehicles as well as the wider community is very exciting."
Biomethane is similar to natural gas and according to National Grid could account for 15 per cent of the domestic supply by 2020.