Nestlé UK has signed a 15-year corporate power purchase agreement (PPA) to buy the output from Ørsted's Race Bank Offshore Wind Farm.

The 15-year indexed fixed price agreement with Ørsted will buy 31MW of green power from the Race Bank Offshore Wind Farm from the total capacity of 573MW. The deal represents Ørsted's largest fixed-price corporate PPA in the UK.

Race Bank Offshore Wind Farm is one of the newest operational wind farms in the UK and was commissioned in 2018 with 91 Siemens Gamesa 6MW wind turbines.

Starting from 1 May 2020, Nestlé UK will start purchasing 125GWh of green power per year to cover half of Nestlé UK power consumption. The agreement, along with Nestlé UK's already existing PPAs, secures that all of Nestlé UK's consumption is covered by PPAs from renewable energy backed by certificates. For Ørsted, it stabilises revenues for Ørsted's Race Bank Offshore Wind Farm and reduces merchant power price exposure across the portfolio.

Stefano Agostini, CEO for Nestlé UK and Ireland, 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 per cent of our electricity from wind power, another huge milestone in our efforts to become a sustainable business."

The corporate PPA with Nestlé UK is Ørsted's second in the UK, following the 23MW agreement with Northumbrian Water, signed in February 2019.

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