Nestlé UK signs 15-year PPA agreement with Ørsted

28 April 2020 (Last Updated July 30th, 2020 22:24)

Nestlé UK has signed a 15-year power purchase agreement (PPA) with Danish renewable energy company Ørsted.

Nestlé UK signs 15-year PPA agreement with Ørsted
Nestlé UK to purchase 31MW green power from Race Bank offshore wind farm. Credit: Ørsted A/S.

Nestlé UK has signed a 15-year power purchase agreement (PPA) with Danish renewable energy company Ørsted.

As per the terms of the PPA, Nestlé UK will purchase 31MW of green power from the573MW Race Bank offshore wind farm, which is owned at 50% by Ørsted.

Nestlé UK and Ireland CEO Stefano Agostini said: “I’m incredibly proud that at Nestlé we are doing the right thing to play our part in reducing climate change.

“With our partnership with Ørsted, we are now able to cover 100 % of our electricity from wind power, another huge milestone in our efforts to become a sustainable business.”

Located on the north Norfolk coast and off the Lincolnshire coast, Race Bank is equipped with 91 Siemens Gamesa 6MW wind turbines.

The offshore wind farm was officially opened in June 2018 and can meet power requirements of more than half a million homes in the country.

The agreement between Ørsted and Nestlé UK is said to be the largest fixed-price corporate PPA in the UK.

Beginning from 1 May 2020, Nestlé UK will purchase 125GWh of green power annually that will be sufficient to cover 50% of Nestlé UK power consumption.

Ørsted Offshore senior vice-president and responsible for corporate PPAs Rasmus Errboe said: “We’re very happy to enter into this long-term agreement with Nestlé and support them to achieve their sustainability ambitions.

“Large corporations are increasingly taking climate action by sourcing green power, thereby making important contributions to the demand for renewable energy.

“Today’s announcement with Nestlé UK demonstrates offshore wind’s attractiveness as a reliable, large-scale source of green power and underlines Ørsted’s ambition to continue to be a leader within corporate PPAs for offshore wind.”