Jack Daniel’s maker Brown-Forman has become the first major US spirits and wine producer to enter a power purchase appreciate after taking on 30 MW of renewable electricity annually.
The company have purchased the power from Solomon Forks Wind Project, a new wind power project in Kansas, which is expected to generate the equivalent of more than 90% of Brown-Forman’s annual electricity usage in the United States.
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.
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.
“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,” said Rob Frederick, Brown-Forman, vice president, corporate responsibility.