United Drug has made the switch to Renewable Gas (Biomethane) - supplied by Flogas Enterprise - as part of the company's efforts to become carbon neutral by 2030.
The biomethane, which is being sourced from Green Generation in Cush, Co Kildare, will increase incrementally in the coming years.
Renewable gas, also known as biomethane, is a clean, renewable and carbon neutral fuel.
Its potential as a renewable fuel for transport, heat and electricity is well-recognised in the EU's commitment to becoming a highly energy-efficient, low carbon economy.
Flogas Enterprise are the first company to offer the renewable gas to commercial customers in Ireland.
The EU Commission has identified Ireland as being the country with the greatest potential for developing this clean energy per capita.
Flogas Enterprise said its data day ahead gas prices have risen about 350% in 2021, adding that this has put a focus on the strategic importance of developing indigenous gas supplies in Ireland.
Barry Murphy, Flogas Enterprise's Commercial Director said today deal marks an exciting development in the Irish market.
"Ireland has significant untapped potential in renewable gas. We have a long-term history of supplying natural gas to United Drug for over 12 years and this new contract will see 10% of their total gas requirements in the next year, supplied as renewable gas by us," Mr Murphy said.
"We see a growing demand for this in Ireland and believe that it will play a crucial part both in powering Ireland's future and in helping companies make the transition to renewable energy," he added.
Paul Reilly, CEO of United Drug, said the company's mission is to become carbon neutral by 2030.
"This is an important step in cutting our carbon emissions. It will enable our business to become more sustainable and provide us with a long-term solution to our requirements," Mr Reilly said.
"It also reflects our values and desire to do our part in the community to lead the way in responding to climate change. We are replacing our existing energy sources with sustainable, more environmentally friendly alternatives with the focus on a sole use of electricity from renewable energy sources," he added.