The developer of a controversial windfarm off the coast of Aberdeen has agreed a deal to sell its German coal division.
Vattenfall struck a deal to sell its lignite-burning power plants and open cast mines to Czech energy company Energeticky a prumyslovy holding (EPH) and private equity group PPF Investments.
The Swedish energy giant said the deal represented a “major step” in becoming a greener energy firm.
Magnus Hall, Vattenfall’s president and chief executive said: “The sale means more than 75% of our production will be climate neutral compared to about 50% today.”
The loss-making business employs 7,500 people.
The deal – which has to be signed off by the German government – will see the Czech firm take over £1.56billion worth of clean up liabilities, but also a £1.3billion cash cushion which underpins the loss-making coal energy production operation.
No figure was given for the value of the sale although Vattenfall said the deal would hit it income in the first half of the year by £1.9billion to £2.3billion. But it added that the impact would have been higher if it had not agreed a deal to sell the business.
Mr Hall added that the deal “frees up resources to focus more on renewable energy”.
Last month Vattenfall gave assurances it has the resources to fund the £230million project European Offshore Wind Deployment Centre (EOWDC) off the coast of Aberdeen.