Brown Forman goes green
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Brown Forman goes green

Luxury spirit and wine maker Brown Forman, best known for Jack Daniels whiskey and Finlandia vodka, has committed to a renewables power purchase agreement (PPA). The company has signed a 15-year deal with Infinity Renewables, an energy developer, to purchase 30MW of power every year from a Kansas-based onshore wind project, which is currently under construction.

Brown Forman’s share price has risen by 86% over the last 12 months!

graph 2002 brown forman

SOURCE: Yahoo Finance

The tipple-titan says that it’s the “first major spirits and wine producer in the U.S.” to commit to such an agreement. And it’s an ambitious one: once the wind farm is operational, Brown Forman expects it to be able to contribute as much as 90% of the company’s U.S. power usage.

Brown Forman will purchase the energy generated over the net fifteen years from Infinity, and retain ownership of the renewable energy credits “to offset the emissions from electricity usage at its U.S. facilities”. The energy generated by the farm can then be sold on the wholesale market.

Rob Frederick, Brown Forman’s vice president for corporate responsibility, said: "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."

The PPA will help Brown Forman meet its 2023 goals: to curb 2012-level emissions by 15%. Steve White, an energy consultant at Schneider Electric who helped arrange the deal, said:

"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."

Disclosure

Dominion holds Brown Forman in its Global Trends Luxury Fund.


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