Haven Power is a subsidiary of the Drax Group PLC and is the UK’s largest independent electricity supplier to businesses. It sources its power from the Drax power plant in Selby, Yorkshire, which in 2013 began operations to convert to biomass from coal. The deal with Haven Power is worth more than £500 million and will run for more than five years with an option for two further five-year renewals, thereby potentially extending the contract to more than £1.5 billion over 15 years.
Thames Water already sources around 20 percent of its electricity from self-generated solar, wind, hydro and biogas. However, the new deal with Haven Power will enable the utility to meet all its electricity needs with renewable energy.
“I’m delighted that Drax and Haven will play such an important part in helping to deliver Thames ‘renewable objectives” said Drax Group Chief Executive, Dorothy Thompson. “As the UK looks to decarbonise in an affordable and pragmatic way, it is pioneering companies like Thames that are leading the way.”
Angus Berry, energy manager, Thames Water, added that the utility’s energy and carbon strategy centres around reducing costs for customers and minimising its impact on the environment. The deal with Haven puts downward pressure on bills and the company is also looking forward to expanding the relationship in order to further minimise energy costs and emissions.
Drax currently supplies around 8 percent of the UK’s power and has now converted two of its six unit from coal to sustainable biomass. Plans are in hand to convert a third unit to biomass later this year. The estimated 12 million tonnes of carbon saved once three units are fully converted is equivalent to taking 10 percent of the UK’s total vehicle fleet off the roads and makes Drax the single largest decarbonisation project currently underway in Europe.
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