First Major U.S. Spirits and Wine Producer to Enter Power Purchase
LOUISVILLE, Ky.--(BUSINESS WIRE)--Feb. 6, 2018--
Brown-Forman Corporation (NYSE:BFA)(NYSE:BFB) today announced a major
commitment to renewable energy with an agreement to purchase 30
megawatts (MW) of electricity annually from Solomon Forks Wind Project,
a new wind power project in Kansas. The wind farm is expected to
generate the equivalent of more than 90% of Brown-Forman’s annual
electricity usage in the United States. Brown-Forman is the first major
U.S. spirits and wine producer to commit to a power purchase agreement
(PPA) in the U.S.
Power purchase agreements allow companies such as Brown-Forman to invest
in renewable energy generation on a large scale and publicly demonstrate
a commitment to renewable energy. These arrangements also provide a
stable price for power over the length of the contract.
Brown-Forman will purchase the wind power generated over the next 15
years and retain ownership of the resulting renewable energy credits to
offset the greenhouse gas emissions from electricity usage at its U.S.
facilities. The electricity generated by the wind farm will then be sold
on the wholesale market.
“It takes energy to distill and produce our high quality spirits and
wines. This new wind project will add new renewable energy capacity to
the grid and demonstrates our commitment to a lower carbon economy. We
believe that renewable energy is a prime solution for a sustainable
energy future,” said Rob Frederick, Brown-Forman, vice president,
Schneider Electric’s Energy & Sustainability Services worked with
Brown-Forman to identify and evaluate options and arrange the deal. The
project is supported by a PPA between Brown-Forman and Infinity
Renewables, the developer of Solomon Forks Wind Project.
“This partnership demonstrates how forward-looking companies like
Brown-Forman are approaching their energy use, and leading the way with
their investment in low-cost, clean energy that is both good for their
business and society,” said Steve Wilhite, Schneider Electric, senior
vice president, energy and sustainability services.
The Solomon Forks Wind Project is located on over 50,000 acres of land
near the city of Colby in northwestern Kansas. Construction activities
for the entire project are slated to commence in 2018 with commercial
operation targeted for 2019.
Renewable energy accounted for the majority of new installed global
energy capacity in 2016, according to the International Energy Agency,
and power purchase agreements by companies in the U.S. have totaled
close to six gigawatts since 2015.
In 2012, Brown-Forman set a series of environmental goals, including
adopting an ambitious target to reduce absolute greenhouse gas (GHG)
emissions by 15% by 2023. While the company will continue to pursue
additional reduction opportunities within its own operations, the power
purchase agreement will enable the company to meet this target once
construction of the Solomon Forks Wind Project is complete.
For nearly 150 years, Brown-Forman Corporation has enriched the
experience of life by responsibly building fine quality beverage alcohol
brands, including Jack Daniel’s Tennessee Whiskey, Jack Daniel’s & Cola,
Jack Daniel’s Tennessee Honey, Jack Daniel’s Tennessee Fire, Gentleman
Jack, Jack Daniel’s Single Barrel, Finlandia, Korbel, el Jimador,
Woodford Reserve, Old Forester, Canadian Mist, Herradura, New Mix,
Sonoma-Cutrer, Early Times, Chambord, BenRiach, GlenDronach and Slane.
Brown-Forman’s brands are supported by over 4,700 employees and sold in
more than 165 countries worldwide. For more information about the
company and its corporate responsibility efforts, please visit http://www.brown-forman.com/.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180206006280/en/
Source: Brown-Forman Corporation
Phil Lynch, 502-774-7928
Director Corporate Communications
Jay Koval, 502-774-6903