GERMANY – AB InBev signed a 10-year Virtual Power Purchase Agreement (VPPA) with global renewable energy developer, BayWa r.e to purchase 100% renewable electricity for its European brewing operations.
Under the deal, BayWa r.e will supply the Budweiser brewer with over 130 megawatts of solar power from two solar farms with a combined power output of almost 200 megawatts.
This makes it the largest Pan-European corporate solar power deal in history, covering AB InBev’s 14 breweries in Western Europe and over 50 brands brewed and sold across 12 countries, including global brand Budweiser.
BayWa r.e. will also fund and develop two new solar sites in Spain, one of which will be called the Budweiser Solar Farm, which will provide 250 gigawatt hours of renewable electricity per year for AB InBev’s breweries.
AB InBev’s European brewing operations produce over 55 million kegs of beer each year and around five million bottles of Budweiser each week. Budweiser is now AB InBev’s biggest brand in Europe, following its launch in France and the Netherlands last year.
The new solar capacity is expected to be added and connected by BayWa r.e. by March 1st 2022, before which BayWa r.e. will provide AB InBev with 75 gigawatt hours of Guarantees of Origin from its wind farm “La Muela” in Zaragoza, Spain.
Once all Budweiser in Western Europe is brewed renewably, the brand will feature a new symbol on pack – which the brewer said will encourage consumers to choose a beer brewed with 100% renewable electricity.
Jason Warner, Zone President for Europe at AB InBev, said: “We are hugely excited today to announce this partnership with BayWa r.e. to build the Budweiser Solar Farm, add new European solar capacity and brew our beers across Western Europe with renewable electricity.
“As we welcome the new European Green Deal, we now ask our consumers, customers, colleagues, business partners and fellow companies to join us in shifting towards renewable power – we are making our 100% renewable electricity symbol available for any brands that are produced with renewables.”
Matthias Taft, CEO at BayWa r.e., added: “Consumers increasingly want to make ‘green’ choices with the products they buy. Leading brands, like Budweiser, are showing the way and we are proud to be supporting AB InBev in their own renewable energy transition.
Western European countries in scope of this deal are: Belgium, France, Netherlands, Italy, Spain, the Canary Islands, Germany, Luxembourg, Austria, Finland, Sweden, Denmark and Norway. Russia and UK have already signed renewable electricity agreements.
As part of its 2025 Sustainability Goals, AB InBev has committed that all of its purchased electricity will come from renewable sources.