SSE to offload 50% stake in waste-to-energy JVs in Yorkshire

UK utility SSE Plc (LON:SSE) today announced an agreement to dispose of its 50% stake in two waste-to-energy joint ventures (JVs) in Yorkshire for GBP 995 million (USD 1.3bn/EUR 1.1bn).

European Diversified Infrastructure Fund III, managed by Australian asset management firm First Sentier Investors, will buy SSE's half in the JVs it co-owns with US waste-to-energy company Wheelabrator Technologies Inc.

The two JVs hold the Ferrybridge Multifuel 1 and Ferrybridge Multifuel 2 facilities, each with a capacity of 75 MW, and the proposed Skelton Grange Multifuel project, which is to have 45 MW of installed power.

Financial close for the Skelton Grange Multifuel project is expected to take place some time in April 2021,while the start of operation is seen in 2025.

The disposal is part of SSE's initiative to raise GBP 2 billion from the sale of non-core assets by autumn of 2021. The utility has already shed a 25.1% stake in the 367-MW Walney offshore wind farm and has agreed to sell a 33% stake in meter asset company MapleCo.

The deal is due to close by the end of November, subject to regulatory approval. Barclays Plc (LON:BARC) and Morgan Stanley (NYSE:MS) advised SSE on the transaction.

(GBP 1.0 = USD 1.305/EUR 1.107)

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