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BT is going green after striking a deal to source almost all of its UK electricity from environmentally-friendly energy.

Worth several hundred million pounds, the three-year contracts with npower and British Gas will provide all of BT's 6,500 telephone exchanges, satellite earth stations, offices and depots with environmentally-friendly power.

Just under half of the electricity will be sourced from sustainable resources such as wind generation, solar, wave and hydroelectric schemes. The rest will come from low carbon fuel-efficient energy from CHP (combined heat and power) sources.

As a result, the initiative will save emissions equivalent to the amount of carbon dioxide produced by almost 50,000 homes - or more than 100,000 cars.

Dr Steve Howard, chief exec of environmental outfit The Climate Group, said: "BT's initiative is globally significant and sends out a message that the purchase of green electricity is no longer a niche market – it has now gone mainstream."

Of course, BT is no stranger to the green matters, as it already uses recycled paper and has invested in energy-efficient buildings. And when it needs a new corporate logo, it's happy to recycle an old one too. ®

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