New deal to save £84 million from Government’s energy bill

A new deal by the Cabinet Office with Air Products will cut the government's energy bill by £84 million.

As part of the 20 year deal, subject to planning and approval, Air Products will build a £300 million ‘advanced gasification energy from waste’ in Tees Valley, Teesside.

Via the Government Procurement Service (GPS), the government has signed a fixed price power purchase agreement (PPA) with Air Products for the company to supply 37MW of power.

Minister for the Cabinet Office, Francis Maude, said: “This is the beginning of a pioneering approach to how Government uses its collective buying power and long term demand to buy energy.”

The deal comes as part of the government’s Energy for Growth initiative, which was launched in December.

Maude added: “This is about changing the way we work to not only get the best out of our suppliers, but the best out of the UK.”

Lisa Jordan, Air Products’ business manager for Bio-Energy Europe, said: “By buying the electricity we produce, the Cabinet Office will help Air Products divert up to 350,000 tonnes of non-recyclable waste from landfill every year, which we will turn into reliable, controllable, renewable energy.”