Sale of company behind fracking plan completes
The sale of an energy company which planned to undergo fracking in North Yorkshire has now completed.
Third Energy Holdings’ onshore business, which has its operations at Knapton, has been sold to York Energy (UK) – the UK arm of US business Alpha Energy.
The sale includes the onshore gas exploration, appraisal and production company Third Energy UK Gas, and Third Energy Trading which owns the power generating station at East Knapton, North Yorkshire.
Tom Reed, CEO of Alpha Energy,said: “We are very grateful for the support our development plans have received from all key stakeholders during the acquisition process, and we now look forward to deploying our engineering-led approach to being responsible owners and operators of these onshore assets.”
The company added that the onshore business would continue to operate with current management and staff.
Plans to sell Third Energy were first revealed in April.
Third Energy was originally given approval in 2016 to engage in fracking activities at Kirkby Misperton. The fracking process involves the injection of pressurised liquid into the ground to extend and open fissures, releasing shale gas, and has been heavily criticised at local and national levels.
The launch of fracking at Kirkby Misperton was blocked by the government, who said a further financial investigation would be needed before approval would be given. This was in 2018 and the company was still waiting for that approval in March this year when it began removing equipment from site.
Strict rules around the process of gas extraction stipulate that fracking activity must stop if a mini-earthquake of 0.5 or above is detected, which have recently led to the UK’s shale gas commissioner Natascha Engel resigning after just six months.
In September 2018, the company was hit when chairman Keith Cochrane, the former interim chief executive of Carillion, and Jitesh Kishorekumar Gadhia, Baron Gadhia of Northwood, quit because of the company’s reportedly “low levels of activity”.
