SDCL Energy Efficiency Income Trust PLC on Monday said it had renewed a long-term contract in the US within its Primary Energy business.
SDCL Energy Efficiency Income Trust invests in assets in the energy efficiency sector, such as electric vehicle charging infrastructure and geothermal and biogas projects.
SDCL said Cokenergy has renewed the contract with Cleveland Cliffs at the Indiana Harbor Works East steel mill.
The contract provides for the on-site supply of steam and electricity which is generated by Primary Energy’s facility from waste heat from the on-site coke ovens.
Final terms align with the assumptions included in the September 2023 valuation.
The company said the renewal will de-risk elements of the contract by passing through certain costs and introducing improved inflation correlation of revenue.
SDCL said operational cash flows generated in the final quarter of 2023 remained in line with expectations, notwithstanding some variability in individual asset performances.
The pursuit of selected disposals from the portfolio remains a priority and SDCL said its investment manager had received a number of credible proposals in relation to multiple assets.
There are within its range of pricing expectations and support the most recently published net asset value, the firm noted.
Shares in SDCL rose 0.7% to 52.94 pence each in London early Monday.
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