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• This is the largest public renewable electricity commitment ever made by a Canadian brewer
• Through this long-term Virtual Power Purchase Agreement (VPPA), Budweiser is purchasing 51% of the electricity generated from Capital Power’s 75-megawatt Enchant Solar facility in Taber, Alberta
• Beginning in 2022, the Renewable Energy Certificates (RECs) from this partnership, will cover all of the electricity needed to brew Budweiser in Canada and will result in the early achievement of Labatt’s 100% renewable purchased electricity goal by 2025

EDMONTON, Alberta –  Today, Canada’s best-selling beer brand, Budweiser announced a virtual power purchase agreement (VPPA) with Capital Power, a leading player in state-of-the-art energy sustainability. The agreement includes approximately 51% of the electricity generated by a new solar facility in Taber, Alberta. Of Budweiser’s contracted electricity, approximately one-quarter will be bundled with project-generated RECs directly from the solar facility and three-quarters will be bundled with RECs sourced elsewhere in Canada. This milestone development is the next chapter in AB In Bev’s global sustainability strategy in which Labatt Breweries of Canada plays a significant role, and specifically the Budweiser brand’s commitment to produce every beer it brews using 100% renewable electricity.

“This initiative is solar-powered proof of Budweiser Canada’s commitment to renewable electricity, and it supports Budweiser’s commitment to brew every beer with 100% renewable electricity,” said Andrew Oosterhuis, VP Marketing, Labatt Breweries of Canada. “We’re very proud to be Canada’s leading brewer in renewable electricity and believe that a brighter future is in our hands. We are optimistic that this type of collaborative and innovative partnership will begin to define the model by which Canadian companies can join us in choosing earth.”

The long-term deal supports the addition of Capital Power’s Enchant Solar project to the Alberta market. This is the largest public renewable electricity commitment ever made by a Canadian brewer, with Labatt’s Budweiser brand leading the way in publicly announcing an innovative agreement of this nature. This agreement demonstrates the power of collaboration across industries to advance renewable electricity, for a better world. Construction is set to break ground in the second quarter of 2022 with commercial operations expected by the fourth quarter of 2022.

“Capital Power is excited to support Budweiser’s renewable electricity goals through this unique, collaborative agreement,” said Sian Barraclough, Vice President, Strategy and Sustainability, Capital Power. “Our team of experts and innovators is dedicated to developing customized renewable energy solutions that meet the needs of our partners, and empower them to meet their clean energy targets. As we work to achieve net carbon neutrality by 2050, we plan to develop renewable projects that not only help us meet our sustainability goals but support a low-carbon economy overall.”

“I commend both Labatt and Capital Power for their leadership and their impressive commitment to powering Budweiser’s operations with 100% renewable electricity. Projects like Capital Power’s Enchant Solar facility are a clear example of why Alberta’s energy-only electricity market is highly competitive and is so attractive for private investment. We are pleased to see industrial electricity consumers increasingly committed to reducing the carbon intensity of their operations, which unlocks huge potential for market-driven, renewable electricity generation in Alberta. This contributes to competitive electricity prices for consumers while brands like Labatt fulfill their environmental, social and corporate governance commitments,” said Dale Nally, Associate Minister of Natural Gas and Electricity for the Government of Alberta.

Globally, Budweiser has brewed over 10 billion beers with renewable electricity and has supported renewable infrastructure projects valued at $1 billion. This long-term partnership marks AB InBev’s (Labatt’s parent company) 12th major virtual power purchase agreement around the world and is the first of its kind in Canada.

AB InBev’s 2025 Sustainability Goals which were introduced in 2018, remain the company’s most ambitious public commitment yet and include:

• Smart Agriculture: 100% of our direct farmers are skilled, connected and financially empowered
• Water Stewardship: 100% of our communities in high stress areas have measurably improved water availability and quality
• Circular Packaging: 100% of our product is in packaging that is returnable or made from majority recycled content
• Climate Action: 100% of our purchased electricity comes from renewable sources & 25% reduction of carbon emissions across our value chain

Capital Power Forward-looking information

Certain information in this news release is forward-looking information for Capital Power within the meaning of Canadian securities laws as it relates to anticipated financial or operating performance or events. When used in this context, words such as “expect” or similar words suggest future outcomes. By their nature, such statements are subject to significant risks, assumptions and uncertainties, which could cause Capital Power’s actual results and experience to be materially different than the anticipated results. Forward-looking information or statements included in this news release are provided to inform Capital Power’s shareholders and potential investors about management’s assessment of future plans and operations. This information may not be appropriate for other purposes. Material forward-looking information in this press release includes expectations pertaining to the timing of construction and commercial operations commencement of the Enchant Solar Project.

This statement is based on certain assumptions and analyses made by Capital Power in light of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate, including assumptions around: (i) performance; and (ii) the status of and impact of policy, legislation and regulations. Whether the actual timing will conform to Capital Power’s expectations is subject to a number of known and unknown risks and uncertainties which could cause the actual timing to differ materially from Capital Power’s expectations. Such material risks and uncertainties are: (i) regulatory and political environments including changes to environmental legislation; and (ii) changes in general economic and competitive conditions. See Risk Factors in Capital Power’s 2020 Integrated Annual Report, for further discussion of these and other risks.

Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the specified approval date. Capital Power does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in Capital Power’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

About Budweiser Canada

Budweiser – the King of Beers – has been brewed since 1876 under the highest quality standards. Brewed in Canada by Labatt for more than 35 years, Budweiser uses only the finest ingredients without any artificial ingredients, additives or preservatives. Budweiser is distinguished by its clean, crisp, distinctive flavour, the result of a unique beechwood aging process. At Budweiser, we believe our global brand can play a role in driving positive change. Just as we are committed to brewing the highest quality beer, we are also 100% committed to creating a brighter, cleaner future that ensures beer can continue to be enjoyed for thousands of years to come.

About Capital Power

Capital Power is a growth-oriented North American wholesale power producer with a strategic focus on sustainable energy headquartered in Edmonton, Alberta. We build, own and operate high-quality, utility-scale generation facilities that include renewables and thermal. We have also made significant investments in carbon capture and utilization to reduce carbon impacts and are committed to be off coal in 2023. Capital Power owns over 6,400 megawatts (MW) of power generation capacity at 26 facilities across North America. Projects in advanced development include 425 MW of owned renewable generation capacity in North Carolina and Alberta and 560 MW of incremental natural gas combined cycle capacity from the repowering of Genesee 1 and 2 in Alberta.

For further information:

Katherine Perron, Media Relations, Capital Power
[email protected], 780-392-5335

Tamar Nersesian, Director, Communications, Labatt Breweries of Canada
[email protected], 416-318-3989

Jessica Walcot, Account Manager, Veritas Communications
[email protected], 647-545-7735