ScottishPower has sold Knapton Power Station to an American company focussing on green and clean energy.
RGS Energy, a subsidiary of US Energy Systems, has bought the site and a 42MW open cycle gas turbine in a £15.5m deal.
ScottishPower has also entered into a long-term agreement with RGS, which will see ScottishPower take all of the electricity generated by the plant as well as the natural gas produced from the surrounding reserves.
The power station, which opened in 1995, runs solely on gas from the surrounding gas reserves.
“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 contract maximises shareholder value,” commented John Campbell, director of Energy Wholesale, the energy generation business owned by ScottishPower.
American green energy firm buys Knapton power station
