Nestlé’s UK subsidiary has signed a 15-year indexed fixed price agreement with Ørsted to buy part of the power from the Race Bank offshore wind farm. Nestlé UK will buy the output of 31MW of the offshore wind farm’s 573MW total capacity, making it Ørsted’s largest fixed-price corporate power purchase agreement (PPA) in the UK.
From 1 May, Nestlé UK will start purchasing 125GWh of green power per year to cover half its power consumption. The agreement, along with Nestlé UK’s existing PPAs, means all of Nestlé UK’s consumption will be covered by PPAs from renewable energy backed by certificates.
For Ørsted, it stabilises revenues for the wind farm and reduces merchant power price exposure across the portfolio.
Rasmus Errboe, senior vice president and responsible for corporate PPAs at Ørsted Offshore, said, “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.”
The corporate PPA with Nestlé UK is Ørsted’s second in the UK a 23MW agreement with Northumbrian Water signed in February 2019.
Race Bank was commissioned in 2018. It can generateup to 573MW from its 91 Siemens Gamesa 6MW wind turbines.