Credit: Phoenix Solar
Oil and gas giant Shell has signed an agreement to acquire a 43.83% interest stake in US solar developer Silicon Ranch Corporation from investment manager Partners Group for US$193-217 million.
Subject to regulatory approvals, the transaction is expected to close in Q1 2018. Shell also has the option to increase its ownership after 2021.
Partners Group will continue to support Silicon Ranch through a newly issued junior debt financing simultaneous with the closing of the sale.
Nashville-based Silicon Ranch will continue to operate under its existing management and the Silicon Ranch brand. The firm has doubled its operating portfolio for three consecutive years, with approximately 880MW of PV systems contracted, under construction, or operating in 14 states, with a further 1GW in the pipeline.
The company said that the transaction would enable it to accelerate its growth strategy by developing new projects, entering new markets, and expanding product offerings across its portfolio.
"We were impressed by Silicon Ranch's proven track record, its market-led development strategy, and its long-term ownership model and commitment to the communities it serves," said Marc van Gerven, Shell vice president of Solar. "Partnering with Silicon Ranch progresses our New Energies strategy and provides our US customers with additional solar renewable options. With this entry into the fast-growing solar sector, Shell is able to leverage its expertise as one of the top three wholesale power sellers in the US, while expanding its global New Energies footprint."
Matt Kisber, Silicon Ranch co-founder and CEO, said: "By pairing our solar expertise and trusted brand with the scale, resources, and brand equity of Shell, we are well-equipped to collaborate with our utility partners to provide comprehensive, win-win energy solutions for them and their customers.”
Last week, Shell announced it was developing a 20MW solar plant at Moerdijk in the Netherlands where it runs one of Europe's largest petrochemicals manufacturing sites.
Now in its sixth successful year, Solar & Storage Finance USA is the only event which looks at raising capital for solar, storage and collocated solar and storage projects in the USA. The conference will help delegates understand how providers are evolving propositions for storage and how they can access capital for standalone solar or storage, and co-located projects. Meet debt providers, funders, utilities, corporate off takers and blue chip energy firms with capital to invest and developers with credible pipelines.
As the Energy sector accelerates along its digital transformation journey, the industry is faced with how best to deploy technology in order to transform operations, drive efficiency, reduce cost and lessen environmental impact.With digitalisation affecting the entire value chain, EnTech will play a pivotal role in demystifying the technology disrupting the market and help organisations with investment in innovation.EnTech features a case-study led agenda providing expert market insight and an unrivalled networking opportunity to discuss the latest innovation and implement the right technology roadmap.