Finance, Industrial, Sourcing Renewables, Wind - March 29, 2017
AB InBev commits to 100% renewables, inks 1st PPA
The world's largest brewer, Anheuser-Busch InBev, on March 28 announced a 100% renewable energy goal for the company's global operations, which represent nearly 6 terawatt-hours of electricity a year.
The company, whose beverages include Budweiser, Beck's and Stella Artois, said in a news release that it's aim is to source all of its purchased electricity, which accounts for about 90% of its total consumption globally, from renewable sources by 2025. In making the commitment, InBev joined RE100, the global initiative led by The Climate Group in partnership with CDP.
Once it hits the target, AB InBev will be the largest corporate direct purchaser of renewable electricity in the global consumer goods sector, according to the news release, and will have reduced its operational carbon footprint by 30%. The company has also published an infographic illustrating the highlights of its plans.
AB InBev, which acquired SABMiller in October 2016, currently sources around 7% of its purchased electricity from renewable sources. In future, the company expects to secure 75-85% of its purchased electricity through direct power purchase agreements, or PPAs, and said it just signed its first with Iberdrola in Mexico.
According to the release, the agreement with Iberdrola will provide 490 GWh of wind power per year, enabling AB InBev to use 100% renewable purchased electricity across all its production sites across Mexico. The 220 MW project is expected to increase the country's total wind and solar energy capacity by more than 5% when it comes online in 2019.
"and for the communities where we live and work," said CEO Carlos Brito said in a statement. "Cutting back on fossil fuels is good for the environment and good for business, and we are committed to helping drive positive change. We have the opportunity to play a leading role in the battle against climate change by purchasing energy in a more sustainable way."