By Colin Kellaher 



  Diageo PLC on Monday said the $130 million whiskey distillery it is building in Lebanon, Ky., will be carbon-neutral, making it one of the largest such distilleries in North America and the first for the U.K. spirits maker. 


  Diageo said the Lebanon plant will be powered by 100% renewable electricity, moving the company closer to its goal of sourcing all of its electricity from renewable sources by 2030. 


  The maker of Johnnie Walker whiskey and Tanqueray gin said it will incorporate a variety of features in the new distillery that will avoid annual carbon emissions by more than 117,000 metric tons, which it said is the equivalent of taking more than 25,000 cars off the road for a year. 


  Diageo said the site, which it expects will be fully operational in 2021, will produce Bulleit as its first and lead brand. 


  Write to Colin Kellaher at colin.kellaher@wsj.com