Shoosmiths helps Molson Coors combat climate change with PPA

Beer and cider drinkers can enjoy their pints in the knowledge that they are doing their bit to combat climate change thanks to the Molson Coors Beverage Company (the brewers of Carling, Coors and Doom Bar among other iconic beers) signing a power purchase agreement (PPA) to supply their UK operations with 100% green energy generated from the Tween Bridge wind farm in South Yorkshire.

Shoosmiths LLP drafted and helped to negotiate the contracts that underpinned the 10-year deal, which means that around 1 billion pints produced in the UK each year at breweries in Burton-upon-Trent, Tadcaster and Sharps in Cornwall as well as the Aspall Cyder House in Suffolk, will be made with 100% renewable energy. The agreement also covers supply to Molson Coors’ corporate offices, national distribution centre and national call centre in Cardiff.

RWE will provide 75 gigawatt hours of renewable energy a year (about the same amount of electricity that would serve 25,000 households). The brewer has made impressive progress in other parts of its sustainability plan including increased use of recycled or reusable packaging (bottling its Staropramen brand using 100% recycled material for example) and reducing water waste.

Shoosmiths advised Molson Coors on all the legal aspects of this corporate PPA arrangement, including the PPA with RWE and the sleeving and energy supply agreements with its licensed electricity supplier.  The Infrastructure and Energy team at Shoosmiths have a strong track record in corporate PPAs and are currently advising a number of generators and large corporate offtakers/buyers on power purchase agreements underpinning various renewable energy projects in the UK.

Commenting on the deal, James Wood-Robertson, head of Shoosmiths Infrastructure and Energy sector group who led on this transaction, said:

“Corporate PPAs have a number of benefits for the offtaker/buyer, providing an efficient means of realising their commitment to renewable energy with less exposure to market risks. We were delighted to support Molson Coors on this deal that helped them reach their climate protection targets and also provided long term energy cost certainty.  Molson Coors is the first major UK brewer to produce all its beers and ciders using 100% green electricity and this PPA means that their aim to reduce carbon emissions by 50% across all their direct operations in the UK is now four years ahead of schedule, and that’s got to be worth raising a glass!”


This information is for general information purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given. Please contact us for specific advice on your circumstances. © Shoosmiths LLP 2024.



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