SIMEC Energy, a part of GFG Alliance, has signed a hydro-electric power agreement to acquire green power developer and generator Green Highland Renewables (GHR) from Ancala Partners, an investment firm.
SIMEC has planned to build a total of one gigawatt capacity of renewable green power generation plants in the UK within three years.
The decision has been taken to support its fellow GFG company Liberty Steel’s aim to develop five million tons of low-carbon ‘GREENSTEEL’ production in the UK within five years.
The acquisition includes 18 hydro-electric power stations in the Scottish Highlands and a team of 17 engineers, operators and designers.
In addition, SIMEC will undertake the development of eight more hydropower plants on its Lochaber Highland estate lands with its planning process scheduled to start next year.
The acquisition is expected to complete by the end of February next year.
GFG Alliance chief investment officer and SIMEC Energy chief executive Jay Hambro said: “We are rising to the challenge of delivering one-gigawatt green energy capacity to power UK industrial growth.
“That will double the size of SIMEC’s existing portfolio. We are already one of the UK’s largest producers of hydropower and, with this transaction, we will expand our hydro capacity even further.”
Founded in 2007 ,GHR is a hydro scheme provider, from initial project concept through consent, construction, operation and generation.
GFG executive chairman Sanjeev Gupta said: “We are delighted to have agreed to this deal at the same time as the publication of the UK Government’s white paper on industrial strategy because we intend to be a standard bearer for ‘clean growth’ in the economy.
“That link between energy and industry has been at the heart of our own low-carbon GREENSTEEL strategy for years and we are greatly encouraged to see public policy moving in the same direction.”
SIMEC is also planning for a £170m wind farm at Glenshero, designed to generate 164MW of power, which will be Britain’s first large scale subsidy free wind farm.
