Industrial, Sourcing Renewables  -  April 21, 2021

Budweiser to Cover Its Canadian Brewing Operations With New VPPA

Budweiser announced April 19 a VPPA that will allow it to cover 100% of its Canadian operations with Canadian-generated RECs.

The new agreement with Capital Power stipulates that Budweiser will purchase 51% of the electricity generated by Capital Power’s 75 MW solar facility in Taber, Alberta. Beginning in 2022, one-quarter of Budweiser’s contracted electricity will be bundled with RECs from the project, while three-quarters will be associated with RECs from other projects in Canada.

Under the agreement, Labatt Breweries of Canada, the brewer of Budweiser in Canada, will be covered by the clean energy purchase and will be able to reach its own 100% renewable purchased electricity goal by 2025.

“This initiative is solar-powered proof of Budweiser Canada’s commitment to renewable electricity, and it supports Budweiser’s commitment to brew every beer with 100% renewable electricity,” Andrew Oosterhuis, VP of marketing at Labatt Breweries of Canada, said in a statement. “We’re very proud to be Canada’s leading brewer in renewable electricity and believe that a brighter future is in our hands. We are optimistic that this type of collaborative and innovative partnership will begin to define the model by which Canadian companies can join us in choosing earth.”

The agreement is AB InBev’s 12th major VPPA globally and its first in Canada. The company is currently pursuing a goal of sourcing 100% renewable electricity and reducing carbon emissions by 25% across its value chain by 2025.

The VPPA will support the construction of Capital Power’s Enchant Solar project, which is scheduled to begin construction in the second quarter of 2022 and begin operations by the fourth quarter of 2022.

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