Corporate Update

Scottish & Southern Energy PLC
16 June 2006


SSE PROPOSALS FOR ASH SEPARATION PROJECT AT FIDDLER'S FERRY


Scottish and Southern Energy plc ('SSE') and RockTron Limited ('RockTron') have
agreed to co-operate in the completion of a venture which is expected to lead to
the construction, at SSE's Fiddler's Ferry power station in Cheshire, of the
first plant in the UK to separate the ash arising from electricity generation
into constituent mineral parts for sale as cement substitute products and
industrial minerals.


The announcement of this venture took place during a visit to Fiddler's Ferry
today by the Rt Hon David Miliband MP, Secretary of State for the Environment,
Food and Rural Affairs.


The ash which arises from the combustion of coal is currently stored in lagoons
at the Fiddler's Ferry site and in other landfill sites around the UK. The
process developed by RockTron results in the ash being separated into its
mineral parts, mainly cement substitutes alpha(TM) and delta(TM), and industrial
fillers for plastic and paint.


In the UK over two million tonnes of cement substitute products are sold each
year. This is likely to grow significantly as a result of environmental
pressures. The use of these substitutes eliminates the need for a
carbon-intensive limestone kilning process in cement production.

Fiddler's Ferry currently produces around 300,000 tonnes of ash each year and
there is a substantial stockpile of usable ash at the site.

The plant will process up to 800,000 tonnes of ash a year which would supply the
product to the North West of England, a part of the country which is currently
not supplied with cement substitute products. By providing an alternative to the
use of the limestone kilning process, it is estimated that this would help to
reduce carbon emissions by around 500,000 tonnes a year.

Developing the plant would require investment of around £17m. SSE and RockTron
expect to make a final decision on whether to proceed with this development
later this year. Construction work would begin soon thereafter.

During his visit Mr Milliband said: 'I look forward to hearing about the
innovative work being done here at Fiddler's Ferry. Energy companies have an
important role to play in driving down the UK's emissions as we move to a low
carbon economy.'

Ian Marchant, Chief Executive of SSE, said: 'I have no doubt that we have in
this development a potential solution to the long-standing issue of ash
production from electricity generation at coal-fired power stations. This is
another example of the work we are doing to minimise the environmental impacts
arising from these stations. That bodes well for the long-term contribution that
we believe coal can make to securing the UK's supplies of energy.'


Lord Wade, Chairman of RockTron said: 'SSE's commitments to a cleaner
environment makes them an ideal partner for RockTron, which sees itself as an
environmental remediation company. The Fiddler's Ferry plant will be the first
of its kind in the world and offers the three major benefits of producing high
added value industrial minerals, eliminates the need for storing ash in lagoons
and landfill sites, and helps to reduce carbon emissions by about 500,000 tonnes
per annum.'


Enquiries to:

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



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