SSE has agreed to sell its 50 per cent stake in three energy-from-waste projects in Yorkshire to an infrastructure fund managed by First Sentier Investors for £995 million.
The transaction is expected to be completed in late 2020, subject to approval from the European Commission.
The deal covers two operational plants – the Multifuel 1 and 2 facilities at Ferrybridge – as well as the Skelton Grange Multifuel project, which is still under development and is expected to be completed in 2025. All three are 50:50 joint ventures with Wheelabrator Technologies.
Gregor Alexander, Finance Director, said: “This sale marks a major step in our plans to secure at least £2 billion from disposals by autumn 2021, with just over £1.4 billion 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.
“Our disposal programme demonstrates how the company can create value from our assets and supports our plans to invest £7.5 billion over the next five years in the low-carbon infrastructure needed to stimulate a green economic recovery and help the UK transition to a net-zero future.”
As part of its disposal programme, SSE recently sold its 25.1 per cent share in the Walney offshore windfarm to Greencoat UK Wind for £350 million.