Energy major Shell will acquire Daystar Power, an Africa-based commercial and industrial (C&I) solar provider.
It is expected that the deal will allow Daystar to grow its operations in West Africa while helping it expand across the African continent.
The company closed a US$38 million Series B funding round in 2021, which it said would help accelerate its expansion in Nigeria, Ghana, Côte d’Ivoire, Senegal and Togo.
According to Daystar’s website, it currently runs more than 300 power installations with an installed solar capacity of 32MW. It aims to reach 400MW of solar by 2025.
“We have seen booming demand for solar energy in the African markets where we operate,” said Jasper Graf von Hardenberg, CEO and co-founder of Daystar Power. “As part of Shell, we will be able to execute our mission even faster to deliver carbon emission reductions and power cost savings to businesses across Africa.”
Shell has boosted its position in the solar sector this year with the acquisition of India-based renewables platform Sprng Energy for US$1.55 billion as well as PV project developer Solar-Konzept Italia.
The oil and gas major, which has pledged to halve its carbon emissions by the end of the decade, acquired a 44% stake in US independent power producer Silicon Ranch in 2018.
Thomas Brostrøm, Shell’s executive vice-president for renewable generation, said: “We have had a long and established presence in West Africa and with Daystar Power, we are taking our first steps into the renewable power space.
“As we do this, we’re helping to address a critical energy gap for many who currently rely on diesel generators for backup power.”
Also in the region, a new partnership announced today by CrossBoundary Energy Access and Engie Energy Access plans to build a US$60 million portfolio of mini-grids in Nigeria.