Utility giant Severn Trent Plc (LON:SVT) continues its expansion in the renewable energy sector by purchasing Agrivert Holdings LTD for £120m.
The news has been welcomed by investors this morning as Severn Trent shares rally against an index struggling over currency issues and currently stands at 2,015.00p, up 1.64 per cent as of BST 12:41.
Acquisition will increase Severn Trent renewable energy output by almost a third
Agrivert, which generates energy using food waste from 5 food processing plants in the Midlands and London, will work alongside Severn Trent’s two other food waste facilities in Coleshill and Roundhill to increase Severn Trent’s renewable energy output by 106gwh per annum.
With an additional food processing site in Derby set to be complete by 2019, Severn Trent’s renewable energy investment is now set to reach £300mn by 2020.
Severn Trent on track to produce half of its current energy output with renewable sources
The investment is yet another step Severn Trent has made towards achieving the target of being more sustainable and renewable by 2020, with Chief Executive Liv Garfield stating: “Renewable energy is strategically important to Seven Trent and the UK as a whole as we work towards achieving our decarbonisation targets.” as reported in Proactive Investors.