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The Cabinet Office has agreed a deal with Air Products which will help reduce the government's electricity bill by £97 million over the next two decades.
The deal, which was originally due to be signed by the end of May, was formally agreed at the end of last week.
As part of the government’s Energy for Growth initiative, a 20 year deal has been signed between the government – via the Government Procurement Service – and Air Products.
The agreement, which represents 2 per cent of the government’s energy spend, will also see Air Products invest in a new 49MW energy-from-waste facility in the Tees Valley.
The deal had been estimated as representing an £84 million saving to the government, but the latest calculations show that £97 million of savings can be expected over the life of the contract.
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