US renewable power developer Savion, a subsidiary of global oil giant Shell, has formed a new company to take ownership of its solar projects after development.
The new entity, Tango Holdings, is a joint venture (JV) between Savion Equity and US-based investment firm Ares Infrastructure Opportunities. The new company is 80% owned by Ares and 20% by Savion.
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Savion has so far transferred the majority ownership of five solar PV projects, with a combined 496MW of generation capacity, to Tango Holdings. In a statement, it said Tango has “equity interests in the Martin County Solar Project, the Kiowa County Solar Project, and in three additional solar projects currently under construction.”
Shell Renewable Asset Management International will oversee asset management of the projects owned by Tango.
According to its website, Savion currently has three solar projects in operation: the Martin County project, the Kiowa project and the Madison Field project.
The company said that the deal “reflects Shell’s strategy to selectively develop renewable generation projects and reduce ownership as they mature,” effectively, to build projects and sell them off.
It said the strategy would enable Shell to “build scale efficiently, improve capital returns and maintain cost discipline.”
Savion said it has a total of 3,049MW of solar PV and energy storage assets either operational, under construction or in development. As those projects reach operations, the transfer of capacity to Tango Holdings may continue.
“The investment by Ares is a testament to Savion’s success building and operating assets that deliver renewable power to key energy markets in the USA” said Greg Joiner, executive vice president for power at Shell.
According to climate organisation Global Witness, Shell’s investment in renewables fell by 5% in 2024 while its expenditure on oil and gas increased. In 2023, Shell weakened its emissions-cutting targets from 20% to “15-20%”.
