Shell to Sell Stake in Two U.S. Renewable Energy Projects

Researched by Industrial Info Resources (Sugar Land, Texas)--As it plans to transition away from owning renewable power projects, Shell plc (NYSE:SHEL) (London, England) on Monday said it will sell its ownership interests in two U.S. renewable energy projects to investment management firm InfraRed Capital Partners (London).

"This agreement follows our guidance at Shell's Capital Markets Day to pursue dilutions in ownership from power interests while maintaining access to renewable electrons via select offtake agreements," said Glenn Wright, senior vice president of Shell Energy Americas, in a press release. "We continue to take a disciplined approach within our current renewables portfolio, aiming to work with partners and focus on opportunities where we can integrate across the value chain through trading and optimization."

Financial terms of the sale were not disclosed.

Shell is selling a 60% interest in the 182-megawatt (MW) Brazos onshore wind farm in Fluvanna, Texas, where a $200 million repower project is in the final commissioning stage. Through its subsidiary Savion (Kansas City, Missouri), Shell also is selling a 50% interest in the Madison Fields solar farm under construction in Madison County, Ohio, which is expected to generate 180 MW of solar power once the $250 million project is completed by the end of the year.

According to the press release, Shell will retain 100% of power offtake from the Brazos wind project, and the Madison Fields solar project will "retain an existing corporate power purchase agreement in place with a third party." Shell will be the asset manager of Brazos and Madison Fields. The sale of both assets is expected to be completed by early 2024.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed reports for the Brazos and Madison Fields projects.

During a presentation at Shell's Capital Markets Day, Downstream and Renewables & Energy Solutions Director Huibert Vigeveno said, "We will selectively take development risk in renewable generation projects, diluting as they mature, and retaining access to the green electrons," which will be used to support low-carbon efforts such as hydrogen and carbon, capture and storage.

Still, Industrial Info is tracking other renewable energy projects attributed to Shell and its subsidiaries, including Savion's under-construction $150 million solar plant in Mercer County, Kentucky. The plant will utilize about 500,000 First Solar Incorporated (NASDAQ:FSLR) (Tempe, Arizona) Series 6 photovoltaic (PV) solar panels to provide 175 MW of solar generation. The project is expected to wrap up next year. Click here for the project report.

Also underway is construction of Savion's 150-MW, $125 million PV solar farm in Cass County, Illinois, and a $140 million solar-plus-storage project in Marion County, Ohio. The latter project will provide 100 MW of solar power and feature a 20.3-MW battery energy storage system (BESS) utilizing lithium-ion technology. Subscribers can read more information on the Illinois and Ohio projects. Both are expected to wrap up by the end of 2024.

Subscribers to Industrial Info's GMI Database can click here for a full list of detailed reports for projects mentioned in this article and click here for a full list of related plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).