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.
Go deeper with GlobalData
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.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“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 August, SSE Renewables ordered 443MW of capacity from Danish wind turbine manufacturer Vestas for the Viking Wind Farm in Shetland, UK.
