Case Study: Sale of 124 MW GE 6FA CCGT Facility from Administration
Client: Ernst & Young (as Receivers)
Location: Cardenden, Fife, Scotland
Scope: Exclusive valuation, marketing, and successful sale of a 124 MW GE 6FA Combined Cycle Gas Turbine (CCGT) facility
Date: July 2003
Deal Value: £12.3 million
From Administration to Acquisition
When the Fife Power Station entered administration in early 2003, it was a stranded asset with significant technical potential but limited commercial clarity. Owned jointly by El Paso and Global Energy and constructed in two phases between 1998 and 2001, the site included a GE Frame 6FA gas turbine, NEM HRSG, and 58 MW Ansaldo steam turbine, all maintained to OEM standards.
With Ernst & Young acting as receivers, CESS was appointed to conduct an independent technical valuation and commercial advisory, prepare the confidential sale memorandum, and manage a global marketing process to secure a qualified buyer.
The Challenge
- Distressed context: The plant was operating, but in receivership, with multiple warranties and agreements needing untangled (including complex O&M and gas supply contracts).
- Environmental risk: Historic issues with steam carryover had damaged the HRSG and ST—both repaired pre-sale, but still flagged in technical diligence.
- Time-sensitive: With new UK electricity trading rules (BETTA) set to reshape value dynamics, timing was critical.
CESS’s Role
- On-site inspection & valuation of all major equipment and support systems
- Preparation of a full Information Memorandum, in collaboration with E&Y and PB Power
- Coordination of non-binding bid rounds, including technical Q&A and data room
- Exclusive negotiation with SSE as the preferred bidder
- Support in agreement of final commercial terms and operational transition
Outcome
In late 2004, Scottish & Southern Energy (SSE) acquired the site for £12.3 million, securing 10 jobs and announcing an additional £3 million investment to upgrade the facility. SSE’s Chief Executive, Ian Marchant, highlighted the plant’s strategic value in diversifying SSE’s generation portfolio and improving mid-merit flexibility under the UK’s upcoming BETTA regime.
The acquisition followed SSE’s £242 million purchase of Medway Power, cementing its position as one of the UK’s top five generation asset holders.
Impact & Legacy
This case underscores CESS’s ability to extract value from distressed but technically sound assets, manage complex stakeholder environments, and deliver successful outcomes in tight timeframes.
With this project, CESS demonstrated:
- Deep familiarity with GE 6FA CCGT technology
- Confidence in navigating receiver-led asset sales
- An ability to align technical due diligence with evolving regulatory frameworks