Thames Water goes 100% renewable
Thames Water will soon be 100% powered by renewable energy, after inking a five-year, £520m supply deal with Drax-subsidiary Haven Power.
The 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.
Thames Water - the UK's largest water and sewerage company - currently sources about 20% of its electricity through self-generated renewables.
The company's 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% 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% of our own electricity by 2020."
Haven Power sources its energy from the Drax power plant in Yorkshire which has converted two generating units into biomass capacity, with plans to convert a third next year.
The plant is now the UK's single largest supplier of renewable energy, but also supplies around 8% of the UK's overall power demand.
Drax Group 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 decarbonise in an affordable and pragmatic way, it is pioneering companies like Thames that are leading the way."
Last year, a £56m investment helped Yorkshire Water increase the production of renewable energy across its 11 largest sites by 80%. The company expects to generate 75gWh this year, thereby lowering its carbon footprint by nearly 15,000 tonnes.