Global oil major Shell continues its long march to “new energy” with the acquisition of a utility-scale solar and big battery developer in the United States, from Macquarie’s Green Investment Group.
Shell New Energies US, a subsidiary of Royal Dutch Shell, says it has signed an agreement to buy 100% of Missouri-based renewables developer Savion, to “significantly expand” its existing solar and storage assets.
The deal will transfer to the Shell subsidiary Savion’s US pipeline of more than 18 gigawatts of solar and battery storage projects, including more than 100 projects under development across 26 American states.
“Savion’s significant asset pipeline, highly experienced team, and proven success as a renewable energy project developer make it a compelling fit for Shell’s growing integrated power business,” said Shell New Energies’ Wael Sawan, director of integrated gas and renewables.
“As one of the fastest-growing, lowest-cost renewable energy sources, solar power is a critical element of our renewables portfolio as we accelerate our drive to net zero.”
The acquisition of Savion adds to Shell’s expanding global solar and energy storage portfolio, including in Australia, via the 2019 purchase of a 49% share in Esco Pacific, which at the time had 350MW of solar assets under long-term management and 1GW-plus of projects “in the pipeline.”
But it is also part of the fossil fuel giant’s plans to become a global leader in the supply of renewable electric power and services, including through the acquisition of energy retailers and other key players like German home battery manufacturer, Sonnen.
In Australia this has included a deal last month to take ownership of online energy retailer Powershop Australia, which has a customer base of more than 185,000 in Victoria, NSW, South Australia and Queensland.
And before that, its purchase of ERM Power, one of Australia’s largest electricity retailers, with a dedicated business in providing electricity supplies to commercial and industrial customers.
The grand plan is for Shell to sell around 560 terawatt-hours of electricity a year, globally, by 2030 as part of its Integrated Power business, and to serve more than 15 million retail and business customers worldwide as a leading provider of clean power-as-a-service.
Shell is also aiming to become a net-zero emissions energy business by 2050, a commitment that it noted this week was “in step with society.”
Shell said that subject to the satisfaction of closing conditions, Savion would become a wholly owned subsidiary of Shell, operating under its existing brand within Shell’s Renewables & Energy Solutions Integrated Power business.
“Shell has been providing energy to US customers for more than 100 years and plans to remain an energy leader in the country for decades to come,” a statement said.
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