Britain's SSE sells stake in West Yorkshire facilities for $1.3 billion

FILE PHOTO: An SSE company logo is seen on signage outside the Pitlochry Dam hydro electric power station in Pitlochry, Scotland, Britain, November 8, 2017. REUTERS/Russell Cheyne/File Photo

(Reuters) - British utility SSE SSE.L on Tuesday agreed to sell its 50% stake in West Yorkshire-based Ferrybridge and Skelton Grange assets for 995 million pounds ($1.30 billion) in cash, as part of its strategy to dispose of non-core assets by autumn 2021.

The company said the stake in the two facilities, which convert residual residential, commercial and industrial waste into renewable energy, would be sold to a fund managed by Mitsubishi UFJ Financial Group owned 8306.T First Sentier Investors.

The assets are a joint venture between SSE and U.S.-based waste-to-energy firm Wheelabrator Technologies, which has been aiming to sell its power plants in the United Kingdom.

“This sale marks a major step in our plans to secure at least 2 billion pounds from disposals by autumn 2021, with just over 1.4 billion pounds now delivered,” SSE Finance Director Gregor Alexander said in a statement.

The company's move follows the sale of stakes in certain wind farm projects to renewable infrastructure fund Greencoat UK Wind and French oil major Total TOTF.PA, among others.

The renewable power generator and network operator said it would use the cash from the disposals to support its 7.5 billion pound plan to invest in low-carbon energy infrastructure.

Reporting by Yadarisa Shabong in Bengaluru; Editing by Aditya Soni