26th May 2015 12:51
LONDON (Alliance News) - Biomass power plant operator Drax Group PLC on Tuesday said its Haven Power electricity supply business has signed a GBP520 million deal with Thames Water to supply the water utility's electricity requirements for five years.
Drax said there is an option in the deal to extend the contract by a further ten years in two five-year tranches, which could increase the total value of the contract to more than GBP1.5 billion over 15 years.
The deal will mean that Thames Water, which already sources around 20% of its electricity via self-generated renewables, to meet all of its electricity needs from renewable sources.
"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," said Drax Chief Executive Dorothy Thompson.
Drax shares were down 1.1% to 395.00 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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