GBP 20M Biomass Investment

Scottish & Southern Energy PLC
16 December 2004


         £20 MILLION INVESTMENT IN ELECTRICITY GENERATION FROM BIOMASS

Scottish and Southern Energy plc ('SSE') has decided to invest around £20m in
the development of additional facilities to 'co-fire' fuels from renewable
sources, in order to displace fossil fuels, at its Ferrybridge and Fiddler's
Ferry power stations.

The investment will result in the installation, by the end of the next financial
year, of 'direct injection' burners at both stations. The new burners will
enable coal and biomass to be 'co-fired' more efficiently, and therefore
increase the amount of biomass that can be used to generate electricity at the
power stations. They will also enable SSE to generate electricity from a more
diverse range of biofuels.

In the first six months of 2004/05, the stations' output of electricity
qualifying for Renewable Obligation Certificates (ROCs) was over 300GWh. The
installation of the new burners is expected to give the stations the ability to
generate a total of around 1,500GWh per year of ROC-qualifying output.

Ian Marchant, Chief Executive of SSE, said: 'When we acquired the power stations
in July, we said we would examine all opportunities for improving the way they
operate and for reducing the level of emissions from them. This investment to
enhance their ability to generate electricity from biomass is a very exciting
and positive step forward. With our hydro assets and developing wind portfolio,
it will confirm SSE's position as the largest generator of electricity from
renewable sources in the UK.'


Enquiries

Alan Young      Director of Corporate Communications    0870 900 0410
Denis Kerby     Media and Investor Relations Manager    0870 900 0410




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