United Utilities has agreed to sell its renewable energy business for £100m.
The Warrington-headquartered water supplier's United Utilities Renewable Energy (UURE) will be acquired by SDCL Energy Efficiency Income Trust.
United Utilities has developed a portfolio of solar, wind and hydro renewable assets since 2014 and UURE comprises 69 MW of renewable generation assets across 70 sites.
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The company said that following the deal, the assets will continue to provide long-term green energy to its regulated water and wastewater business, United Utilities Water.
United Utilities said: "This sale allows UU to recycle its capital employed in the UURE business back into the next phase of our ambitious journey to net zero, whilst continuing to source green energy from the existing UURE portfolio."
Completion of the deal is expected in the coming months.
United Utilities chief executive Steve Mogford said: "We are committed to our ambitious carbon pledges and target of achieving net zero carbon emissions by 2030.
"A key part of setting the foundations for that goal has been our renewable energy portfolio that, in recent years, we have built across our UU sites.
"With the portfolio now fully built-out and operating well, we are excited about the opportunity to recycle our investment in these assets to support the next steps in our plans to achieve net zero.
"We are confident that SEEIT will be an excellent long-term partner for the UU group, as the UURE asset portfolio moves into the next phase of its life cycle."
Royal Bank of Canada Capital Markets acted as financial advisor to UU and Norton Rose Fulbright acted as legal advisor.
