Tarmac energy deal signals wind of change
TARMAC are set to lead the way in the quarrying and construction industry by pioneering an innovative contract to source renewable wind energy, which is expected to deliver both financial and environmental benefits to the business.
The company is the first business of its kind to sign a landmark Power Purchase Agreement (PPA), which will see it buy discounted renewable energy directly from producer Nuon Renewables – part of Vattenfall Wind Power UK – and sell it back to agreed retailers npower.
Initially, Nuon’s wind farm at Pendine Sands in south-west Wales will provide Tarmac with approximately 14.3GWh/year of power on a trial basis, but Tarmac say they hope to increase this volume significantly in the near future.
The £3.5 million deal, which is due to commence when the wind farm becomes operational later this month, is only the second of its kind in the UK, after a major supermarket entered into a similar contract earlier this year.
‘As a business, it is important for us to continually look at ways in which we can not only become more energy efficient, but also reduce the use of fossil fuels,’ said Rob Turner, senior manager for direct material sourcing at Tarmac. ‘As part of this focus, we are exploring alternative sources of energy, such as wind power.
‘Through a PPA, Tarmac can guarantee a supply of renewable energy at a discounted or fixed rate and thereby benefit from a cost reduction as well as an option to buy at a fixed rate which is not subject to demand-driven, short-term energy price hikes.
‘Like most companies, Tarmac typically buy their energy from a retailer but, through this deal, we are buying directly from the energy source and selling to our retailer, who will credit our account. We are also then entitled to Levy Exempt Certificates (LECs), which verify the amount of green energy produced by the wind farm that we have available to use,’ said Mr Turner.
Initially, wind energy generated will be pooled into Tarmac’s total power consumption, but the company will have the option to use the green energy to power specific UK sites if required.
