Shares digital

Already the largest renewable generator in the UK, Scottish & Southern Energy (SSE) has increased its green credentials through the purchase of Slough Heat & Power in a £49.25 million deal. The acquisition brings with it the UK’s largest dedicated biomass energy facility, which takes waste paper products and converts them into fuel. ‘This will give us a platform from which to build up our interests in biomass and waste-to-energy, areas which we believe will become increasingly important over the next decade,’ says Scottish and Southern chief executive Ian Marchant. Some 200 gigawatts of its output qualify for the Governments Renewable Obligation Certificate (ROC) scheme, which it says is equivalent to around 90 megawatts of wind generation.

Speculation has also been mounting that SSE is interested in buying wind specialists Airtricity, which analysts believe could cost around £1 billion. As well as boosting its renewable output the purchase would also fit in with plans to increase its presence in Ireland, where Airtricity is based and provides electricity for around 38,000 commercial customers.

SSE also gained approval to build a 40MW wind farm in Scotland at the end of December but has been vocal in its criticism of the planning process system. At the time Marchant said ‘it remains much too time consuming and unpredictable to be an effective means for realising Scotland’s and the UK’s renewable energy requirements.’ It said it initially asked for approval in October 2005 and that the slow regulatory system means the £55 million plant will not start producing power until 2010. It will, however, take the company’s total wind capacity to 275MW although it is awaiting approval for several more farms which will take capacity to 650MW.

Shares says: Shares have soared over the last few months and should continue climbing with the company at the forefront of the UK’s renewable generation.