Northumbrian Water has signed a deal with Ørsted to buy power from an offshore wind farm, claimed to be the first power purchase agreement (PPA) of its kind.
The 10-year deal is the first direct supply agreement between a business and an offshore wind farm in the UK.
It will see the water company take almost a third of its renewable energy demand from the Race Bank offshore wind farm, which follows an agreement between the two companies which started in April 2018.
The corporate PPA will deliver around 100GWh of renewable electricity per year to Northumbrian Water’s sites in the North East, Essex and Suffolk.
Graham Southall, Group Commercial Director at Northumbrian Water said: “This PPA is not only a first of its kind in the UK; more importantly it aligns perfectly with out sustainability goals and our ambitions of creating a truly cohesive energy management strategy.
“The long term stability this brings is fantastic for us and great news for our customers and stakeholders because it reduces operational costs without compromising our work.”
Race Bank offshore wind farm has a total capacity of 573MW, capable of powering more than half a million homes.