Diageo North America, an alcoholic beverage company known for manufacturing brands such as Johnnie Walker, Guinness, Baileys, and Smirnoff, has been selected to receive up to $75 million in funding from the Department of Energy.
This funding will support the electrification of the company's production sites in Shelbyville, Kentucky, and Plainfield, Illinois, with the goal of making both facilities carbon-neutral by 2026 and 2028, respectively.
To achieve this, Diageo will partner with Rondo Energy to install Rondo Heat Batteries at the production sites. The Rondo Heat Batteries capture and store renewable energy to deliver continuous heat and power that addresses intermittency concerns. This will ultimately provide low-cost, zero-carbon heat and power while eliminating the sites' reliance on natural gas for boilers used in the heating process.
"Today’s announcement from the Department of Energy marks a milestone for our North American operations and gives us the opportunity to incorporate innovative technologies into our production footprint to make our business more efficient, resilient, and sustainable,” said Marsha McIntosh-Hamilton, President of North America Supply at Diageo North America. “Through our partnership with Rondo Energy, we’ll build a model that can be replicated across our supply operations in the U.S.”
Traditional production methods in the beverage industry - including distilling, bottling, cleaning, pasteurization, and HVAC systems - require large thermal loads, which are typically dependent on natural gas. Diageo's project will replace natural gas use and eliminate nearly 17,000 metric tons of direct greenhouse gas emissions annually across both facilities - the equivalent of removing more than 4,000 gas-powered cars from the road for a year.
“Rondo is excited to be working with Diageo to power their production operations and cut their costs,” said Rondo Energy CEO John O’Donnell. "The Rondo Heat Battery opens new opportunities for simpler cost reductions and deeper integration with renewable energy sources, and we’re honored Diageo has chosen us to help them achieve their 100% renewable energy goal.”
