New Joint Venture

Scottish & Southern Energy PLC
14 September 2007


    Scottish and Southern Energy plc and Carbon Trust Enterprises team up on
                                InSource Energy


 New joint venture to accelerate development of UK's commercial waste to energy
                                     market



Scottish and Southern Energy plc and Carbon Trust Enterprises today announced a
new joint venture to support InSource Energy Limited - a bio-waste to energy
business created by the Carbon Trust. Scottish and Southern Energy has agreed to
invest up to £2.7 million to acquire up to 40 per cent of InSource Energy plus
up to a further £10.0 million to fund the company's projects as it enters its
next phase of development.


InSource Energy was created by Carbon Trust Enterprises, a subsidiary of the
Carbon Trust, to drive forward the development of the commercial waste to energy
market in the UK. InSource Energy is initially focusing on six sectors of the UK
food industry, which currently produce around 5.6 million tonnes of
biodegradable waste a year. It can develop, build, finance, own and operate
waste to energy systems, allowing businesses to outsource waste and energy
processes whilst benefiting from financial and carbon savings. It also offers an
independent service that assesses the best fit technology for each customer's
needs. The initial projects will provide on-site anaerobic digesters to break
down the food waste into methane, which will be captured and used to generate
electricity and heat.

Ian Marchant, Chief Executive of SSE, said:

'The disposal of waste in the UK is increasingly difficult. At the same time,
waste provides an alternative and localised source of UK-derived fuel. This
investment will enable SSE to become an active participant in a new, sustainable
and opportunity-rich sector of the UK's energy industry.'


Tom Delay, Chief Executive of the Carbon Trust, said:

'InSource Energy is another example of how Carbon Trust Enterprises is
developing exciting low carbon businesses and bringing opportunities for
co-investment to the market. Waste to energy technology offers great potential
to cut carbon emissions and our aim is to accelerate the deployment of on-site
facilities across the UK. Our partnership with Scottish and Southern Energy on
InSource Energy is a vital step in this process and we are delighted to be
working with them on this venture.'



Enquiries to:


Scottish and Southern Energy plc

Sharron Miller-McKenzie, Press Office Manager - 0845 0760 530










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