DRAX subsidiary Haven Power, a specialist electricity supplier to UK businesses, has signed a deal worth more than £500m to supply electricity to Thames Water.
The five year deal has an option for two further five-year renewals, which could increase the overall value of the contract to more than £1.5bn over 15 years.
Haven Power is the UK’s largest independent electricity supplier to businesses and sources its power from the Drax power plant in Selby, Yorkshire.
Following a ground breaking transformation to biomass transformation, Drax is now the UK’s single largest supplier of renewable energy.
The deal will enable Thames Water, which already sources about 20 per cent of its electricity through self-generated renewables such as solar, wind, hydro and biogas, to meet all of its electricity needs from renewables.
Drax chief executive, Dorothy Thompson, said: “I’m delighted that Drax and Haven will play such an important part in helping to deliver Thames’ renewable objectives. As the UK looks to de-carbonise in an affordable and pragmatic way, it is pioneering companies like Thames that are leading the way.”
Thames Water energy manager Angus Berry said: “Our energy and carbon strategy centres around reducing costs for customers and minimising our impact on the environment. “This deal with Haven puts downward pressure on bills and means we will now be using 100 per cent renewable electricity. We look forward to growing our relationship with Haven to exploit further opportunities to minimise energy costs and emissions, as well as continuing to work towards our ambitious target of self-generating 30 per cent of our own electricity by 2020.”
Drax is undergoing a major transformation programme to convert its power station, which supplies around eight per cent of the UK’s power, from coal to sustainable biomass. Two out of six units have now been converted.