Diageo to spend €100 million to decarbonise St James’s Gate brewery by 2030

Diageo is to spend more than €100 million in decarbonising its historic St. James’s Gate site in Dublin and to end use of fossil fuels in its brewing process.

By 2030, energy use will combine use of grid-supplied electric heat pumps and biogas generated within a new water recovery facility. It will also enable a reduction in water used to brew Guinness by up to 30 per cent.

The investment was futureproofing the business and “underpins the goal to accelerate to net zero carbon emissions for the site and will transform energy and water consumption with the aim to make it one of the most efficient breweries in the world”, said Diageo’s global chief executive Debra Crew.

She announced the investment at St James’s Gate, when she was joined by Taoiseach Simon Harris; Minister for Enterprise, Trade and Employment Peter Burke, and Leo Clancy chief executive of Enterprise Ireland, which is providing Government-backed support for the project.

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The investment will enable St James’s Gate to entirely phase out fossil fuels in its direct brewing operations and to reduce Scope 1 and Scope 2 greenhouse gas emissions generated by the site by more than 90 per cent, in line with the Science Based Target initiative’s definition of net zero. These are emissions it is directly responsible for – separate to those of suppliers.

Taoiseach Simon Harris commended Diageo’s leadership in demonstrating to industry how to decarbonise operations and in being at the forefront of sustainable business.

“Industry is a key pillar of national and global efforts to address climate change, and it is welcome and important that Diageo is showing leadership by decarbonising its operations here in its home city,” he said. St James’s Gate is the largest brewery in Ireland and the largest stout brewery in the world.

With so many tourists also visiting the adjoining Guinness Storehouse, Mr Harris said the move was “not just a green transformation for St James’s Gate” but would send a strong message to the world. “It also demonstrates the Government’s commitment to businesses, big and small, to make the green transition, and to work in partnership to help achieve our climate goals.”

“St. James’s Gate is a historic location for an iconic brand. We’re 260 years into our 9,000-year lease at St. James’s Gate and this investment will ensure that Guinness has an exciting and long-term sustainable future,” Ms Crew said.

She highlighted the success of Guinness 0.0, “which an American publication recently called ‘the king of zero-alc beers’”.

“The 50 per cent increase in sales volume in Ireland in the past 12 months is a demonstration of the changing consumer trends we’re seeing across the globe – and true to form, Guinness moved with times and created Guinness 0.0, without forgoing the beating heart of the product – its quality,” she added.

Since 2020, Diageo had invested over €400 million into its Irish operations – including €200m in building Ireland’s first purpose-built, carbon-neutral brewery in Co Kildare which will begin construction in coming weeks and a €50 million investment into a new Guinness 0.0 production facility.

“This investment is helping us to brew almost 90 million pints of Guinness 0.0 every year for domestic and international markets. Watch this space for some additional Guinness 0.0 investment news over the coming months,” Ms Crew said.

Diageo’s latest investment was “a landmark project in Ireland’s decarbonisation landscape”, Mr Clancy said. Enterprise Ireland was committed to supporting businesses in the transition towards a low-carbon economy while capitalising on the new market opportunities that decarbonisation presents and creating jobs, he added.

Minster Burke said Diageo’s investment into decarbonising St James’s Gate sets a powerful example for businesses transitioning to sustainability. “This investment not only reduces carbon emissions but also fosters innovation, job creation and long-term economic stability. Diageo’s leadership here underscores the idea that sustainable practices are not just ethically sound but also economically savvy, paving the way for a future where economic progress can align with environmental responsibility.”

Diageo is taking action across its operations to reduce its emissions in line with a 10-year ESG action plan, it said, while the announcement represents the next step in becoming net zero in its direct operations. It is preparing a planning application for this decarbonisation project to be submitted to Dublin City Council later this year, and would be engaging with industry experts, local communities and their representatives before submitting the application.

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