SSE sells pipelines business to clean energy fund

Power company SSE has sold its gas pipelines business to a new clean energy-focused infrastructure fund in a deal worth £52.7 million. The SSE Pipelines business is made up of […]

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By Priyanka Shrestha

Power company SSE has sold its gas pipelines business to a new clean energy-focused infrastructure fund in a deal worth £52.7 million.

The SSE Pipelines business is made up of gas connections to 130,000 residential and commercial customers across the UK.

Scottish Equity Partners (SEP) said it has raised £135 million so far for its new Environmental Capital Fund, which is backed by SSE.

The energy company is investing £14 million in the ECF and is also supported by a number of private equity investors led by Lexington Partners.

The fund will invest in UK-based clean energy projects such as hydropower, energy efficiency, heat pumps and district heating schemes.

Gregor Alexander, Finance Director of SSE said: “We are delighted to have the opportunity to complete the disposal and at the same time participate in SEP’s new fund targeted at small-scale clean energy projects throughout the UK.”