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SSE To Divest 50% Stake In MEL1, MEL2 Energy-from-waste JVs For £995 Mln Cash

SSE plc (SSE.L) Tuesday announced its agreement to sell its 50% share in energy-from-waste joint ventures Multifuel Energy Limited or MEL1 and Multifuel Energy 2 Limited or MEL2 for a total cash consideration of 995 million pounds.

The shares are being bought by European Diversified Infrastructure Fund III, an infrastructure fund managed by First Sentier Investors.

The company expects to complete the transaction by late 2020 subject to antitrust approval by the European Commission.

MEL1 and MEL2 are 50-50 joint ventures between SSE and Wheelabrator Technologies Inc. They 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.

SSE in June 2020 had identified its interests in MEL1 and MEL2 as an early priority for sale as part of a strategy to secure at least 2 billion pounds from disposals of non-core assets by autumn 2021.

The proceeds of SSE's disposals will support the company's plans to invest 7.5 billion pounds in low-carbon energy infrastructure over the next five years, helping the UK to reach net-zero carbon emissions, as well as reduce SSE's net debt.

SSE said it retains its 50% interest in the Slough Multifuel project, which is co-owned with Copenhagen Investment Partners.

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