SSE Share News (SSE)

(Alliance News) - SSE PLC on Wednesday said reaffirmed its net zero acceleration programme, saying that it's the "optimal pathway for creating long-term value for shareholders".

The Perth, Scotland-based renewable energy firm said it has evaluated and challenged a wide range of possible strategic options, across both electricity networks and SSE Renewables, including the separation of SSE Renewables.

"This was a rigorous and comprehensive process that involved independent financial and external legal advice, including independent testing by a third-party investment bank appointed by the board specifically for this purpose," the company said.

The programme will see SSE double its existing renewables capacity by 2026. SEE will also be increasing and maintaining a development pipeline in excess of 15 giga-watts and targeting a fivefold increase in renewables output by 2031.

It will do so through a fully funded GBP12.5 billion programme which is supported by ratings agencies, the company noted.

On Monday, activist hedge fund Elliott Management publicly called for SSE to be broken up, a move which it claims could add more than GBP5 billion to the firm's value.

Elliott said on Monday that it was unimpressed by SSE's programme announced last month, which will pour an extra GBP1 billion a year into wind farms and other investments.

After months of lobbying SSE bosses behind closed doors, the US hedge fund on Monday launched a public broadside against the company.

"We believe the market ignores GBP5 billion of value because of SSE's inefficient structure," it said.

Last week, SSE subsidiary SSE Renewables, together with its joint venture partner Equinor, reached financial close on Dogger Bank C, the third phase of its wind farm project. The farm is located off the northeast coast of England and once all three phases are completed Dogger Bank is expected to be the world's largest offshore farm. The wind farm is currently the largest SSE Renewables project in construction.

On Wednesday, SSE Chair John Manzoni said: "The SSE board is absolutely clear that the accelerated growth plan we set out on November 17 is the right one, and that we have the capacity and strength to deliver it, with a management team that is overseeing the construction of more offshore wind than any other company in the world.

"We are now focused on execution in order to fulfil the growth potential available to the group thanks to its clear net zero aligned strategy. The board maintains the highest corporate governance standards and remains fully engaged on the evolution of the strategy to maximise shareholder value. The carefully chosen composition of the group means we benefit from a clear focus on low-carbon electricity while also maintaining a unique range of options in high-growth areas right across the net zero value chain."

SSE shares closed up 0.5% to 1,637.50 pence each in London on Wednesday.

By Greg Roxburgh; gregroxburgh@alliancenews.com

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