SSE sells two waste plants in Yorkshire for £1bn

The FTSE 100 energy giant is trying to raise £2bn by selling several key assets

SSE will sell its stake in two Yorkshire waste-to-energy projects for almost £1bn as the utility continues to raise cash to invest in clean energy infrastructure. 

The deal follows SSE's sale of its consumer energy business to Ovo for £500m last year.

SSE has agreed to offload its 50pc stake in both plants – which are fed municipal, commercial, and industrial waste to generate electricity – to First Sentier Investors, an Australian infrastructure outfit.

Finance director Gregor Alexander said: “This sale marks a major step in our plans to secure at least £2bn from disposals by autumn 2021, with just over £1.4bn now delivered.” 

Shares rose more than 3pc.

In June, SSE said it would raise £2bn from the sale of a number of key assets by autumn 2021 to invest £7.5bn in green energy projects.

The group said at the time that selling the two waste-to-energy sites in Yorkshire was a priority. SSE has sold a wind farm for £350m and a smart meter provider for £90m.

Last month, SSE was fined more than £2m by the industry watchdog for failing to announce inside information that could have influenced the price of wholesale electricity.

Companies are required to publish such information in an “effective and timely” manner, the energy regulator Ofgem said. 

The fine can be traced back to a deal SSE struck in March 2016 with National Grid to provide electricity from the company’s Fiddler’s Ferry power station.