Anheuser-Busch and Enel Green Power (EGP) signed a power purchase agreement through which the brewery will buy the energy delivered to the grid and renewable electricity credits from a portion of EGP's Thunder Ranch wind project in the amount of 152.5 megawatts.
The deal is the beer company's first contracted utility-scale project. The Thunder Ranch wind farm is expected to be running by the end of 2017. The brewer's parent company says it intends to secure 100 percent of purchased electricity from renewable sources by 2025.
Through a Virtual Power Purchase Agreement (VPPA), EGP will sell to Anheuser-Busch the electricity output delivered to the grid by a 152.5 MW portion of the Thunder Ranch wind farm. The output is expected to support the equivalent of producing more than 20 billion 12 oz. servings of beer each year. At the same time, the renewable energy output will be capable of meeting up to 50 percent of Anheuser-Busch's total annual purchased electricity.
The Thunder Ranch wind farm in Garfield, Kay and Noble counties, Okla., is comprised of two phases that total 298 MW of capacity. The overall investment in Thunder Ranch amounts to approximately $435 million.
In March, AB InBev announced its commitment to secure 100 percent of the company's purchased electricity from renewable sources by 2025. This transition will shift 6 terawatt-hours of electricity annually to renewable sources in the markets where AB InBev operates.
AB InBev kicked off this initiative in Mexico by signing a PPA with energy company Iberdrola for 490 gigawatt-hours per year. Under terms of the Enel deal, EGP will deliver the power generated from the 152.5 MW portion of the project to the grid with pricing settled by the two companies. Also under the agreement, the renewable energy credits associated with the power delivered to the grid will be acquired by Anheuser-Busch and retired from the market.