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October 14, 2020

SSE to sell stake in West Yorkshire facilities for $1.29bn

British energy company SSE has agreed to divest its 50% stake in the Ferrybridge and Skelton Grange waste-to-energy assets in England to European Diversified Infrastructure Fund III for £995m ($1.29bn) in cash.

British energy company SSE has agreed to divest its 50 % stake in the Ferrybridge and Skelton Grange waste to energy assets in England to European Diversified Infrastructure Fund III for £ 995m ($ 1 . 29bn ) in cash .

Located in West Yorkshire , the facilities convert residual residential , commercial and industrial waste into renewable energy .

The holding companies that SSE has agreed to sell stake are energy from waste ventures Multifuel Energy ( MEL1 ) and Multifuel Energy 2 ( MEL2 ).

Both MEL1 and MEL2 assets are 50 : 50 joint ventures ( JVs ) between SSE and US based waste management company Wheelabrator Technologies .

They comprise the operational Ferrybridge Multifuel 1 and Ferrybridge Multifuel 2 facilities , each having a capacity of 75MW and the Skelton Grange Multifuel development project .

SSE finance director Gregor Alexander said : “ This sale marks a major step in our plans to secure at least £ 2bn ($ 2 . 6bn ) from disposals by autumn 2021 , with just over £ 1 . 4bn ($ 1 . 8bn ) 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 . 5bn ($ 9 . 7bn ) 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 .”

Expected to be completed this year , the deal is dependent on securing antitrust approval from the European Commission ( EC ).

The company s latest move follows the sale of 25.1% non-operating stake in Walney offshore wind farm to renewable infrastructure fund Greencoat UK Wind for $ 468m 350m ).

In AugustSSE Renewables ordered 443MW of capacity from Danish wind turbine manufacturer Vestas for the Viking Wind Farm in Shetland , UK .

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