Aug. 14, 2008 - Beverage maker Diageo, corporate parent of the Johnny Walker, Tanqueray, and Baileys brands, is pouring more than $120 million into an on-site renewable energy plant at its massive distillery in Scotland - the largest single investment in renewable technology by a non-utility company in the U.K.

The proposed bioenergy project at Cameronbridge in Fife - which is still subject to planning approval - will be the first to integrate both anaerobic digestion and biomass conversion technologies on a commercial scale, according to Diageo.

About 90,000 metric of distillery by-products will be turned into bioenergy in the form of electricity and steam for use at the distillery. When completed, the facility is expected to recover 98% of the thermal steam generated, and nearly a third of the water used, during distillery operations.

In addition, the new facility will generate renewable energy from "spent wash" – a mixture of wheat, malted barley, yeast, and water - produced during distillation. The spent wash is separated into liquid and dried solids. The liquid is then converted, via anaerobic digestion, into biogas and the dried solids form a biomass fuel source.

"[This bioenergy facility] is without question the right way forward in terms of environmental benefits and secures the long-term sustainability of our operation, moving the site away from reliance on fossil fuels," says Bryan Donaghey, managing director of Diageo Scotland.

Diageo has contracted with energy management firm Dalkia to construct the new facility, which is expected to be up and running within two years. The company says it is planning a new distillery at Roseisle in Morayshire, Scotland, which will also feature green-power technologies.

The wine and spirits industry appears to be taking a fresh look at the possibilities for harnessing energy potential from the distillery process. Earlier this month, Anheuser-Busch announced that it is installing bioenergy recovery systems at 11 of its U.S. breweries.