ScottishPower Sells Knapton Power Station to RGS Energy

ScottishPower is to sell Knapton power station, comprising principally the site and a 42MW open cycle gas turbine, to RGS Energy Limited (RGS), a subsidiary of US Energy Systems, for £15.5 million in cash. In addition, ScottishPower has entered into long-term power purchase and gas supply agreements with RGS.

Under the power and gas supply agreements, ScottishPower has an obligation to take all of the electricity generated by the plant and all of the natural gas produced from the surrounding reserves up to 100 bcf, in each case at a discount to market.

John Campbell, Director, Energy Wholesale said "Securing this sale and these long term contracts allows us to recycle the value from this non-core asset into other investment opportunities and provides access to future gas reserves at an attractive price. The excellent sale price and the value of the long term contracts maximises shareholder value."

Knapton power station, near the Yorkshire town of Pickering, opened in 1995. With no connection to the National Gas Transmission System, the station runs solely on gas from the surrounding gas reserves. U.S. Energy Systems is an energy company. The Company owns generating facilities across the US focusing on clean and green energy.

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Posted 08/08/06

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