Brewery group commits to renewable energy

AB InBev announced on 28 March 2017 a commitment to secure 100 per cent of the company’s purchased electricity from renewable sources by 2025. This would be a great step forward given that the amount the brewery group purchases today is seven per cent. In total, this will shift six terawatt-hours of electricity annually to renewable sources in the markets where AB InBev operates and will help transform the energy industry in countries like Argentina, Brazil, India and Africa.

This increased renewable electricity generation will support efforts to achieve climate targets under the 2015 Paris Climate Conference (COP21) agreements. “Climate change has profound implications for our company and for the communities where we live and work,” said AB InBev EO Carlos Brito. “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.”

AB InBev expects to secure 75 - 85 per cent of electricity through direct power purchasing agreements. The final 15 - 25 per cent will mainly come from on-site technologies such as solar panels. This commitment will make AB InBev the largest corporate direct purchaser of renewable electricity in the consumer goods sector globally and will reduce the company’s operational carbon footprint by 30 per cent.

AB InBev’s renewable electricity transformation will begin in Mexico, which is home to the company’s largest brewery, in Zacatecas. AB InBev has signed a Power Purchase Agreement with Iberdrola for 490 gigawatt-hours per year. The agreement with Iberdrola is also expected to increase Mexico’s wind and solar energy capacity by more than five per cent. Iberdrola will build and install 220 MW of wind energy capacity onshore in the state of Puebla, and energy generation is expected to begin in the first half of 2019.

AB InBev plans to enter into similar agreements in other markets in the near future. By launching this new partnership in Mexico, AB InBev hopes to demonstrate that by switching to renewable electricity, businesses across the world can contribute to a 100 per cent renewable electricity future.