Drax Power Station has completed a £702m acquisition of Scottish Power’s gas and hydro stations.
The country’s biggest power station has said it expects the portfolio – which includes four gas power stations in England, and two hydro schemes in Scotland – will generate profits as high as £110m in 2019.
The deal means Scottish Power has become the first of the ‘Big Six’ energy providers to fully ditch fossil fuels.
Will Gardiner, chief executive officer of Drax Group, said: "I am excited by the opportunity to acquire this unique and complementary portfolio of flexible, low-carbon and renewable generation assets.
“It’s a critical time in the UK power sector. As the system transitions towards renewable technologies, the demand for flexible, secure energy sources is set to grow.
“We believe there is a compelling logic in our move to add further flexible sources of power to our offering, accelerating our strategic vision to deliver a lower-carbon, lower-cost energy future for the UK.”
Drax is currently pushing forwards with its move away from coal power, ahead of the government’s deadline of 2025.
The power station, between Goole and Selby, has already converted four of its six generating units to burn wood pellets rather than coal.
Scottish Power has closed all of its coal plants in the past decade, and currently has 2,700 megawatts of wind power capacity operating or under construction in the UK.
“This acquisition makes great financial and strategic sense, delivering material value to our shareholders through long-term earnings and attractive returns,” Mr Gardiner said.
“We are combining our existing operational expertise with the specialist technical skills of our new colleagues and I am looking forward to what we can achieve together."
Drax has announced it expects capital expenditure in 2019 to be in the region of £30-35m.
The chief executive of Scottish Power has described the sale as “a pivotal shift” for the energy provider.
Keith Anderson said: “We are leaving carbon generation behind for a renewable future powered by cheaper green energy.
“We have closed coal, sold gas and built enough wind to power 1.2 million homes.
“Every working day we are investing over £4m to deliver cleaner, smarter power for customers.
Follow Hull Live
Our daily newsletter - To get the latest headlines direct to your email inbox every day, click here .
Follow us on Instagram - On the Hull Live Instagram page we share gorgeous pictures of our stunning city - and if you tag us in your posts, we could repost your picture on our page! We also put the latest news in our Instagram Stories. Click here to follow Hull Live on Instagram .