Whisky giant Chivas invests in low-carbon fertiliser

Aviv Bar Tal of OCI Global; Jean-Etienne Gourgues, CEO at Chivas Brothers; Tim McCreath, MD at Simpsons Malt; and Walter Dandie of Walter Dandie & Sons Farm

Chivas Brothers, the Scotch whisky business of Pernod Ricard, and its distilling wheat supplier Simpsons Malt Limited, have announced an investment in low-carbon fertiliser created by OCI Global.

A select number of farmers in the Chivas Brothers Wheat Growers Group are currently trialling the low-carbon calcium ammonium nitrate (CAN) fertiliser, Nutramon Low Carbon, as part of an exclusive agreement between OCI Global and Simpsons Malt Limited’s agricultural merchanting division, McCreath Simpson & Prentice.

“Nutramon Low Carbon is produced using certified bio-gas and is estimated to have a reduced production carbon footprint of up to 50% compared to conventionally produced fertilisers (cradle-to-gate),” said Chivas.

“Nutramon Low Carbon is ISCC PLUS certified, a recognised independent certification standard for bio, bio-circular and renewable feedstocks across the world.

“While the composition and effectiveness of Nutramon Low Carbon is equal to conventional fertiliser, use of this lower-carbon alternative ultimately equates to a 15-20% reduction in greenhouse gas emissions from the barley and wheat grown for distilling.

“The trial is the latest milestone in Chivas Brothers’ ambition to create a sustainable future for whisky and reduce its indirect carbon footprint.

“With approximately a third of Chivas Brothers’ carbon footprint resulting from growing and processing raw materials such as barley and wheat grown for distilling, tackling the emissions created in their growth is a vital step towards reducing the environmental impact of the production of whisky.”

The brands of Chivas Brothers include Chivas Regal, Aberlour, Ballantine’s, Royal Salute and The Glenlivet. Chivas Brothers is the world’s No.2 Scotch whisky producer.

The farmers will harvest crops involved in the pilot from August to October 2024, with the wheat and malted barley to be used in the production of Chivas Brothers’ Ballantine’s blended Scotch.

Once the impact of the trial has been assessed, Chivas Brothers will be looking at how the use of biobased fertiliser more widely could contribute to reducing carbon emissions from its supply chain.

In time, Chivas Brothers and Simpsons Malt Limited will seek to move toward broader use of green fertiliser, including those using green ammonia produced by electrolysis with renewable electricity leveraging on cooperation with OCI Global’s low carbon ammonia portfolio.

This process creates up to 90% less carbon emissions than traditional fertilisers.

Ronald Daalmans, Sustainability Director at Chivas Brothers, said: “We’re on a mission to reduce carbon emissions throughout our supply chain and that requires us to be at the forefront of new innovations that come to market.

“We cannot do this alone, which is why likeminded partners such as Simpsons Malt Limited and OCI Global are so important to helping us realise this ambition. Together with our farming community, we’re limiting the environmental impact of cereal crops destined for our whiskies.

“We look forward to continuing and expanding this initiative, as well as sharing our findings and experiences with the wider farming and whisky industries to help drive positive change across Scotland and beyond.”

Andy Hindhaugh, Commercial Director at Simpsons Malt Limited, said: “We are deeply committed to sustainability and reducing the environmental impact of our operations.

“This collaboration with Chivas Brothers and OCI Global on the trial of low carbon Nutramon fertiliser represents a significant step towards achieving these goals.

“By working closely with our farmers to adopt innovative, low-carbon solutions, we are not only enhancing the sustainability of our supply chain but also contributing to a greener future for the whisky industry. We are excited about the potential of this initiative and look forward to its expansion and the positive impact it will have on our environmental footprint.”

Aviv Bar Tal, Vice President Commercial Nitrogen at OCI Global, said: “Through its low-carbon portfolio, OCI Global aims to reduce the carbon footprint of the global food production chain.

“We are proud to collaborate with two leading companies, Simpsons and Chivas, to create a partnership in the food and drink supply chain to deliver affordable but also sustainable products.”