Nestlé UK reaches 100% renewables following 15-year Ørsted PPA
Nestlé UK has signed a 15-year corporate power purchase agreement with Ørsted meaning that from next month, all of the company's power consumption will be covered by renewable energy.
Nestlé UK has agreed an indexed fixed price agreement with Ørsted to purchase the output of 31MW from the Race Bank Offshore Wind Farm, which was commissioned in 2018 and has a total capacity of 573MW from its 91 Siemens Gamesa 6MW wind turbines.
The deal is Ørsted’s largest fixed-price corporate power purchase agreement (PPA) in the UK. The deal starts from 1 May 2020, whereby Nestlé UK will begin purchasing 125GWh of renewable energy annually. The deal will cover 50% of the food manufacturer’s power consumption. When combined with existing PPA deals, Nestlé UK’s entire consumption will be covered by renewable energy from certificates.
Nestlé UK and Ireland’s chief executive 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.”
Nestlé UK is Ørsted’s second PPA customer after Northumbrian Water signed the first UK offshore wind corporate PPA in February 2019.
Organisations looking to understand the benefits of Corporate Power Purchase Agreements (CPPAs) for renewable energy now have access to a free 'edie Explains' guide which breaks down everything you need to know about them.
The seven-page edie Explains: Corporate Power Purchase Agreements (CPPAs) business guide, produced in association with edie's supporting partner Ørsted, provides an in-depth summary of how CPPAs can deliver renewable energy targets and support sustainability strategies. The guide feature more insight on Northumbrian Water’s contract.
Ørsted Offshore’s senior vice president 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.”