13th Oct 2020 08:38
(Alliance News) - SSE PLC on Tuesday said it has entered into an agreement to sell its 50% share in energy-from-waste ventures Multifuel Energy Ltd and Multifuel Energy 2 Ltd as part of its strategy to secure at least GBP2.00 billion from disposals of non-core assets by autumn 2021.
The gas & electricity company will be selling its share to European Diversified Infrastructure Fund III, an infrastructure fund managed by First Sentier Investors Pty Ltd, for GBP995 million in cash.
The transaction is expected to be completed in late 2020.
In the financial year that ended March 31, SSE's share of the adjusted operating profit for both Multifuel Energy 1 and 2 was GBP30.5 million, with reported pretax profit of GBP18.1 million. At March 31, SSE's share of the assets within both facilities was GBP344.6 million.
Multifuel Energy and Multifuel Energy 2 are joint ventures between SSE and Wheelabrator Technologies Inc. Multifuel Energy consists of the operational Ferrybridge Multifuel 1 and Ferrybridge Multifuel 2 facilities, as well as the Skelton Grange Multifuel development project - all in West Yorkshire.
Ferrybridge Multifuel 1 and 2 both have a capacity of 75 megawatts. The facilities are capable of processing approximately 725,000 tonnes and 675,000 tonnes of waste per annum respectively.
Skelton Grange Multifuel facility will have an installed capacity of 45 megawatts and be able to process around 400,000 tonnes of waster each year.
SSE Finance Director Gregor Alexander said: "Our disposal programme demonstrates how the company can create value from our assets and supports our plans to invest GBP7.50 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."
SSE shares were up 3.2% at 1,368.72 pence each in London on Tuesday morning.
By Greg Roxburgh; [email protected]
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