SSE sells stake in energy-from-waste projects for £995m

Energy giant SSE has agreed a near-£1 billion deal to sell its stake in three energy-from-waste facilities under plans to raise at least £2 billion by next autumn.

Shares in the group rose 4% as it announced the sale of its 50% holding in the West Yorkshire multifuel sites for £995 million.

SSE was part of a joint venture on two sites in Ferrybridge and one in Skelton Grange.

The sale – to an infrastructure fund managed by First Sentier Investors – comes as part of an aim to raise at least £2 billion by selling off unwanted assets.

SSE will continue to focus on its wind farm operations.

Finance chief Gregor Alexander 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.”

The latest sale follows that of SSE’s stake in Walney Offshore Wind Farm to Greencoat UK energy for £350 million, and an agreement to sell its 33% interest in meter asset provider MapleCo for around £90 million in net proceeds.

Mark Nelson, an analyst at Killik & Co, said: “The divestments will help to strengthen the balance sheet and support the company’s plans to invest £7.5 billion in low-carbon energy infrastructure over the next five years.”

He added the latest sale will boost SSE’s increased focus on electricity networks and renewable energy, in particular UK offshore wind.

Read Full Story Click here to comment