Vattenfall has announced it is selling its lignite operations in Germany.
Czech energy company EPH and its financial partner PPF Investments are buying the lignite coal mines and associated power plants.
Vattenfall said the deal is part of its plans to focus more on renewable energy.
The sale is expected to reduce the company’s CO2 exposure from more than 80 million tonnes to less than 25 million tonnes every year.
Magnus Hall, Vattenfall’s President and CEO added: “This divestment of our lignite assets is good strategically but also financially given current and expected market conditions. We are now accelerating our shift towards a more sustainable production. The sale means more than 75% of our production will be climate neutral compared to about 50% today.”