Irish energy firm Vayu Energy has signed a contract with Celtic Linen valued at €1.2 million-per-annum.

The agreement will see Vayu Energy supply Celtic Linen with gas and 100% green electricity to meet the year-round energy requirements for its operations at its main processing plants in Wexford and sites across the country.

The energy deal coincides with Wexford's connection to the national gas network which will help to significantly cut energy costs for businesses.

Vayu provided expertise and advice in relation to securing a seamless connection to the grid for Celtic Linen which saw gas supplied to its Wexford site for the first time in mid-August. It will also provide Celtic Linen with direct access to wholesale market prices for both gas and electricity. The deal comes at a time when wholesale electricity prices have fallen significantly over the last 12 months with prices down 27% year on year in August.

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Peter Scallan, CEO of Celtic Linen said: "By enabling us to purchase natural gas and electricity on the wholesale markets, our partnership with Vayu gives us access to the best energy prices available. Not only does the deal provide us with a significant reduction in our energy costs, but we are working with a company that has demonstrated an unmatched expertise and understanding of Ireland's energy market."

Stephen Behan, energy specialist at Vayu said: "Ireland's energy market is undergoing a fundamental change in the way businesses procure and manage their energy. Minimising energy costs is becoming an even greater consideration and this is having a direct impact on the way companies across Ireland source their energy. As such, we’re seeing an increasing trend among larger users opting to procure energy directly on the wholesale markets."

(CD/LM)