Budweiser brewery in Canada inks VPPA for solar from Capital Power

Canadian power producer Capital Power Corp (TSE:CPX) will sell 51% of the output of a 75-MW solar project in Alberta under a long-term virtual power purchase agreement (PPA) with the local brewer of Budweiser.

About a quarter of Budweiser’s contracted electricity is bundled with project-generated renewable energy credits (RECs) directly from the solar park, Capital Power said on Monday. The remaining three-quarters will be tied to RECs sourced elsewhere in Canada.

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Alberta-based Capital Power will cover its supply commitment from the 75-MW Enchant solar project, to be installed in the town of Taber. Planned to enter construction in the second quarter of 2022, the plant is scheduled to go online by the closing quarter of the same year.

Labatt Breweries of Canada is the owner of the Budweiser brand in the country. It is part of Belgian brewing group Anheuser-Busch InBev (EBR:ABI), or AB InBev.

According to the statement, this is the first VPPA in Canada. Its signing backs AB InBev’s 2025 goal to use 100% renewable electricity and achieve a 25% carbon footprint reduction across its value chain by 2025.

“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,” said Andrew Oosterhuis, vice president marketing at Labatt Breweries.