Hook Norton brewery is to install a bio-diesel tank after the village won a grant to go green.
The Department of Energy and Climate Change announced that up to £500,000 has been awarded to each of 12 communities, including the village of Hook Norton, through the Government's Low Carbon Community Challenge.
Energy and climate change minister Joan Ruddock said the winners would act as a trial for green action.
Hook Norton village will use the remaining money to install a heat recovery system, solar panels, two community electric pool cars and a ground source heat pump at a primary school.
It will also insulate 40 homes, install solar thermal panels on another 20 and supply bio-diesel fuel for the vehicles of 50 households.
"The community has been working on reducing its carbon footprint for a number of years and we fully support what they are doing," said Hook Norton Brewery managing director James Clarke.