First Ash Separation Plant

Scottish & Southern Energy PLC
05 February 2007


                  GO-AHEAD FOR UK'S FIRST ASH SEPARATION PLANT


Scottish and Southern Energy plc ('SSE') and RockTron Limited ('RockTron') have
concluded an agreement which will 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.

Under the agreement, SSE will acquire one preference share in RockTron and will
provide it with a shareholder loan of up to £22m to facilitate the construction
of the plant. All of the necessary consents are in place, and construction work
is expected to begin in the second quarter of 2007, with the plant becoming
fully operational in the summer of 2008.

The plant itself will remove and process all fresh ash produced and all ash
currently stored in lagoons at the site over a period of up to 25 years. It will
take ash as its raw material and process it into its constituent parts such as
fine ash fraction, coarse ash fraction, magnetic fraction, carbon rich fraction
and cenospheres. It is expected that the plant will be able to process up to
800,000 tonnes of ash per annum.

These constituent parts then become marketable products and will be sold into
their respective markets, with the largest volume being used as cement
substitutes. Without processing, ash disposal would begin to attract landfill
duty and associated environmental liabilities.

The agreement between SSE and RockTron governs all of the commercial and
operational matters in respect of the new plant, including a lease to allow
construction and operation of the plant at the power station and the supply on a
'must-take' basis of ash from the power station to the plant. RockTron will be
responsible for the operation of the new plant and for the marketing and sale of
the constituent mineral parts arising from the processing.

The use of these substitutes reduces the need for a carbon-intensive limestone
kilning process in cement production. By providing an alternative to the use of
the limestone kilning process, it is estimated that the new plant will help to
reduce carbon emissions by around 500,000 tonnes a year.


Ian Marchant, Chief Executive of SSE, said:

'Since we acquired Fiddler's Ferry in 2004, our aim has been to enhance its
overall environmental performance and mitigate any liabilities arising from its
operation, and this agreement with RockTron does both. By reducing the
environmental impact arising from coal-fired electricity generation in this way,
we will again demonstrate why coal has a long-term part to play in meeting the
UK's long-term energy needs.'

Enquiries to:

Scottish and Southern Energy plc
Alan Young - Director of Corporate Communications        + 44 (0)870 900 0410
Sharron Miller-Mckenzie - Press Office Manager           + 44 (0)870 900 0410


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