Energy transfer

Scottish and Southern Energy has agreed to acquire SEGRO’s shares in Slough Heat and Power for £49.25m. The transaction is expected to be completed by the end of the year.

Slough Heat and Power’s main assets comprise a combined heat and power (CHP) plant, with a potential generating capacity of 101MW and an existing electricity and heat generating capacity of 80MW, which is distributed via a steam and water network; 100km of underground electricity network and substations; and 3,000 industrial, commercial and domestic energy customers.

The CHP plant is said to be the UK’s largest dedicated biomass energy facility, and is mainly fuelled by woodchips, biomass and waste paper. Gas, gas oil and heavy fuel oil, however, can also be used in the plant. In addition, the site has a fibre fuel processing plant, which takes delivery of waste paper products and converts these into useable fuel.

Part of the plant is contracted under the Non Fossil Fuel Obligation and part of it produces more than 200GWh of output qualifying for Renewable Obligation Certificates (ROCs), which is equivalent to 90MW of wind generation.

Almost all of the assets are located on the Slough Trading Estate and Slough Heat and Power will continue to offer tenants on the estate an integrated energy solution. The site is supported by a connection to SSE’s Southern Electric power distribution network. Around 140 employees will join SSE once the handover is completed.