Global oil & gas giant Shell has sold a partial ownership stake in two renewable energy projects in the US.
Through its wholly owned independent subsidiaries Shell Wind Energy and Savion Equity, Shell will sell a 50% stake in the 180MW Madison Fields solar PV park in Madison County, Ohio and a 60% stake in the 182MW Brazos wind farm in Fluvanna, Texas. Both will be sold to infrastructure investment manager InfraRed Capital Partners.
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Power from the solar project – which is currently under development and due to be generating power by the end of the year – will be contracted under an existing power purchase agreement (PPA) with a corporate offtaker. Shell will offtake all of the power from the Brazos wind project via its regional arm Shell Energy North America. It will also retain its position as asset manager for both projects.
“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.
“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 optimisation.”
Shell has been limiting and “diluting” its spending on renewables in the last year, following CEO Wael Sawan’s drive to increase returns for the company. He told the Financial Times earlier this year that Shell would be ‘more selective’ in its energy transition efforts, and in the company’s Capital Markets Day 2023 presentation it said that it would pursue growth in “key markets where we can generate high returns”.