SIMEC Energy yesterday announced the acquisition of hydro firm Green Highland Renewable (GHR) in the latest step forward for its high profile green metals plan.
The Gupta family-owned SIMEC Energy announced the acquisition of GHR had been agreed for an undisclosed sum, adding that it the deal is expected to complete by the end of February 2018.
The move will give SIMEC Energy ownership of GHR’s 18 hydro-electric power stations in the Scottish Highlands, as well as its 17-strong design and engineering team.
Alongside the deal, SIMEC announced a target to build 1GW of new hydroelectric generation capacity in the UK over the next three years. It plans to build eight new hydro power plants on its Lochaber Highland estate, where its aluminium smelting operations are located.
Separately, the firm is also working on plans to develop the UK’s first subsidy-free onshore wind farm in the Scottish Highlands, with a planning application due to be submitted in Spring 2018.
SIMEC Energy is part of the Gupta family’s GFG Alliance, which under its GREENSTEEL strategy has championed the use of renewable power to manufacture a range of low carbon metals in both the UK and Australia.
“We are rising to the challenge of delivering one gigawatt green energy capacity to power UK industrial growth,” Jay Hambro, GFG Alliance chief investment officer and SIMEC Energy CEO, said in a statement. “That will double the size of SIMEC’s existing portfolio. We are already one of the UK’s largest producers of hydro power and, with this transaction, we will expand our hydro capacity even further.”
Climate change minister Claire Perry welcomed the latest deal, arguing that it was in line with the goals of the government’s recently unveiled Industrial Strategy.
“Through our modern Industrial Strategy, the government has set out a clear plan for reducing carbon emissions while driving economic growth,” she said. “I am pleased that the GFG Alliance are developing their renewable power assets and building clean growth in their organisation.”