SSE issues $759mn green bond
Scottish energy company SSE has issued its second green bond, worth $759mn (€650mn). The bond will be used to help raise funds to develop more renewable energy projects.
This follows the success of the company’s inaugural green bond in 2017. The current bond will last nine years, maturing in September 2025.
It is hoped that the issuance will help SSE take on a leading role in supporting a low carbon future, as the firm aims to solidify its position as a leader in the renewable energy space.
Gregor Alexander, Finance Director of the Perthshire-based business, stated: “In line with our innovative approach to financing investment and as a major investor in the UK and Ireland’s renewable energy infrastructure, we are pleased that this second green bond continues to show SSE’s focus on sustainability and responsibility principles.
“This funding is consistent with our commitment to maintain a strong balance sheet and strong market rating, and has been secured at very attractive pricing.”
SSE’s previous green bond in 2017 reached $701mn (€600mn) issuance and was the largest ever green bond issued by a UK company.
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.