Beer maker Desnoes & Geddes Limited, which trades as Red Stripe Jamaica, has struck a deal with New Fortress Energy for long-term supply of liquefied petroleum gas or LNG.
The deal was described as the first of its kind for a large company in Jamaica. But that’s only if it meets the expected September 2017 timeline and beats the previously announced supply arrangement between New Fortress and bauxite company Jamalco, set for a 2018 timeline.
Red Stripe estimates that conversion to LNG to power its brewery operations will lead to savings of more than US$336,000 per year and help the brewery meet its sustainability goals, the company said in a statement Friday.
Red Stripe boss Ricardo Nuncio was not reached for comment as he and his managers were said to be in meetings.
As outlined by the brewery, the project is expected to reduce greenhouse gas emissions by approximately 6,000 tonnes per annum. LNG will power Red Stripe’s combined heat and power plant, boosting output by over 50 per cent.
There will also be a conversion of Red Stripe’s main steam boilers from heavy fuel oil to natural gas. The plant’s steam output is expected to increase by 50 per cent, reducing fuel usage overall on-site.
“The sustainability and operational capabilities that are made possible by LNG make our partnership with New Fortress Energy a win for the environment and our business,” said Nuncio in the statement.
“Red Stripe continues to focus on changing the way we operate throughout the entire supply chain so that we can deliver on our commitment to making a positive environmental impact,” he said.
The company, which is owned by Heineken International, did not say how much the project would cost.
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