Shell Expands Solar Portfolio With Sprng Energy Buy
Energy supermajor Shell has signed an agreement with Actis Solenergi to acquire 100 pct of Solenergi Power Private Limited for $1.55 billion and with it the Sprng Energy group of companies.
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.
“This deal positions Shell as one of the first movers in building a truly integrated energy transition business in India,” said Wael Sawan, Shell’s Integrated Gas, Renewables, and Energy Solutions Director.
“I believe it will enable Shell to become a leader across the power value chain in a rapidly growing market where electrification on a massive scale and strong demand for renewables are driving the energy transition.
“Sprng Energy generates cash, has an excellent team, strong and proven development track record, and a healthy growth pipeline. Sprng Energy’s strengths can combine with Shell India’s thriving customer-facing gas and downstream businesses to create even more growth opportunities,” Sawan added.
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 a best-in-class integrated power business, which will help Shell to reach its target of becoming a profitable net-zero emissions energy business by 2050.
According to the supermajor, the transaction is subject to regulatory clearance and is expected to close later in 2022.
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.
Shell is one of the leading developers of floating wind farms in the world with prototypes, pilot farms, and commercial-scale projects in development in France, Ireland, Norway, Scotland, and South Korea.
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