Shell Completes Acquisition Of Solar Expert Sprng Energy
Shell Overseas Investment B.V., a wholly owned subsidiary of Shell, has completed its 100 percent acquisition of Solenergi Power Private Limited and with it, the Sprng Energy group of companies from Actis Solenergi Limited.
Sprng Energy, set up in 2017 by Actis, is a renewable energy platform based in Pune, India, and develops and manages renewable energy facilities such as solar and wind farms and infrastructure assets.
The solar and wind assets Shell acquires through the deal will triple Shell’s present renewable capacity in operation and help deliver its Powering Progress strategy.
An important part of Powering Progress is to develop an integrated power business, which will help Shell reach its target of becoming a profitable net-zero emissions energy business by 2050.
Sprng Energy supplies solar and wind power to electricity distribution companies in India. Its portfolio consists of 2.9 gigawatts-peak of assets with a further 7.5 GWp of renewable energy projects in the pipeline. It is worth noting that the price tag for the acquisition is $1.55 billion. The initial agreement for the buy was made in late April this year.
According to Shell, subject to closing adjustments, about half of the $1.55 billion transaction will be reported as cash capex and the remainder assumed as debt obligations.
Sprng Energy will retain its existing brand and operate as a wholly-owned subsidiary within Shell’s Renewables and Energy Solutions Integrated Power business.
Globally, Shell is investing in building its generation capacity. It has 1 GW of renewable generation capacity in operation, and a total of 4.7 GW in operation, under construction, and/or committed for sale.
Shell also has a further 38 GW of renewable generation capacity in the pipeline for future projects. The company added to its renewable generation capabilities by acquiring US-based solar and energy storage specialist Savion, solar specialist Solar-Konzept Italia, and Australian wind specialist WestWind.
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