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SSE offloads energy-from-waste projects for £995mln cash

Proceeds from its disposals programme are to be used as part of plans to invest £7.5bn in low-carbon energy infrastructure over the next five years as well as reducing net debt

SSE PLC -

SSE PLC (LON:SSE) has agreed to sell its stakes in two energy-from-waste projects for £995mln cash.

The FTSE 100 power company, which in recent years has been transitioning from coal power to low-carbon energy sources, has struck a deal to offload its 50% share in the ventures to an infrastructure fund managed by First Sentier Investors, which is expected to complete by late 2020.

Both projects are joint ventures between SSE and Wheelabrator Technologies, consisting of two 75MW multi-fuel facilities at its Ferrybridge site and a proposed 45MW operation at Skelton Grange, all in Yorkshire.

All three generate electricity using various fuel sources, including municipal waste, commercial and industrial waste and waste wood.

SSE said earlier this year it identified the ventures as an early priority for sale as part of a strategy to secure at least £2bn from disposals of non-core assets by autumn 2021, with sales of a £350mln wind farm sale and a £90mln smart meter provider already agreed.

Proceeds from all the disposals will be used as part of the company's plans to invest £7.5bn in low-carbon energy infrastructure over the next five years as well as reducing net debt.

“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,” said SSE finance director Gregor Alexander.

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