SSE sells stake in three energy ventures in region for £ 995m
SSE HAS sold its 50 per cent stake in three energy- from- waste facilities in West Yorkshire for £ 995m, the company revealed yesterday.
The energy giant was part of a joint venture on two sites in Ferrybridge and one in Skelton Grange, but, as part of its strategy to raise £ 2bn by next year, SSE will continue to focus on its wind farm operations.
In a statement, SSE said: “SSE plc has entered into an agreement to sell its 50 per cent share in energy- from- waste ventures Multifuel Energy Limited ( MEL1) and Multifuel Energy 2 Limited ( MEL2) to European Diversified Infrastructure Fund III, an infrastructure fund managed by First Sentier Investors, for a total cash consideration of £ 995m.
“The transaction is expected to complete by late 2020 subject to antitrust approval by the European Commission.
“MEL1 and MEL2 are 50- 50 joint ventures between SSE and Wheelabrator Technologies Inc, consisting of the operational Ferrybridge Multifuel 1 and Ferrybridge Multifuel 2 facilities ( MEL1), as well as the Skelton Grange Multifuel development project ( MEL2), all in West Yorkshire.”
The statement added: “In June 2020, SSE identified its interests in MEL1 and MEL2 as an early priority for sale as part of a strategy to secure at least £ 2bn from disposals of non- core assets by autumn 2021.
“Today’s announcement follows the sale of SSE’s 25.1 per cent non- operating stake in Walney
Offshore Wind Farm to Greencoat UK Wind for £ 350m and the agreement to sell its 33 per cent equity interest in meter asset provider MapleCo to Equitix, under which SSE will receive net proceeds of around £ 90m on closing.”
Gregor Alexander, SSE’s finance director, said: “This sale marks a major step in our plans to secure at least £ 2bn from disposals by autumn 2021, with just over £ 1.4bn now delivered.
“While these multifuel assets have been successful ventures for SSE, they are non- core investments and we are pleased to have agreed a sale that delivers significant value for shareholders while sharpening our strategic focus on our core low- carbon businesses.