The company is planning to install a £65 million bio-energy facility at its Cameronbridge site in Fife.
Diageo produces nearly 50 million cases of brands of scotch whisky and produces brands such as Johnnie Walker and Smirnoff. It will be working with global energy management company, Dalkia, to create the new facility. Dalkia is partly owned by Veolia.
The bio-energy 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 from a biomass fuel source.
The facility will use both anaerobic digestion and biomass conversion technology to generate steam and power.
According to the company, the system will reduce carbon dioxide emissions at the site by about 56,000 tonnes per year, equivalent to taking 44,000 cars off the road.
Speaking about the project Diageo Scotland managing director Bryan Donaghey said: It is without question the right way forward in terms of our environmental ambitions and secures the long-term sustainability of our operation at Cameronbridge, moving the site away from reliance on fossil fuels.
Image: Bryan Donaghey (left), Managing Director of Diageo Scotland, with Frédéric Pelège, CEO of Dalkia. The pair are pictured at Cameronbridge Distillery with a sample of spent wash, which will be turned into bio-energy in the form of electricity and steam, and a sample of the clean water which will