SSE wraps sale of interests in UK energy-from-waste joint ventures

SSE PLC has closed the sale of its 50% stake in energy-from-waste ventures Multifuel Energy Ltd. 1 and 2 for £995 million, after receiving antitrust approval from the European Commission.

European Diversified Infrastructure Fund III, an infrastructure fund managed by First Sentier Investors, acquired the stake in the ventures from SSE.

Multifuel Energy Ltd. 1 and 2, previously 50-50 joint ventures between SSE and Wheelabrator Technologies (UK) Ltd., own two operational facilities and one development project in West Yorkshire, U.K.

The operational Ferrybridge Multifuel 1 and Ferrybridge Multifuel 2 projects each have an installed capacity of 75 MW and are capable of processing around 725,000 tons and 675,000 tons of waste per year, respectively.

The proposed Skelton Grange Multifuel facility will have an installed capacity of 45 MW, capable of processing around 400,000 tons of waste yearly. It is expected to reach financial close around April and to start commercial operations in 2025.

The transaction is part of the SSE's strategy to sell at least £2 billion in noncore investments by autumn 2021. The proceeds will help the company meet its target of investing £7.5 billion in low-carbon construction projects.