Aditya Birla Renewables, an Indian company, will purchase Sprng Energy (formerly Shell)

The companies announced on Monday that Grasim 'Industries' renewables division will purchase Sprng Energy, a British oil'major', from Shell for $1.8 billion including 'debt'. This is one of India's biggest clean energy acquisitions.

Grasim, India's flagship company, Aditya Birla Group said that the acquisition would add 5 gigawatts of capacity to Aditya Birla Renewables.

The group's renewables portfolio now totals 9.3 GW. This makes it one of largest players in the country's clean energy sector.

India is stepping up its clean energy drive to "meet the rising demand for power". It aims to reach 500 GW non-fossil energy capacity by 2030, from 283 GW currently. This has attracted significant investment from both domestic conglomerates as well as global energy companies.

Adani Group’s Adani Green and ReNew Energy Global dominate the?country’s clean energy sector?.

Grasim explained that the final equity consideration would be determined once debt and cash have been adjusted.

It said that the deal would be financed by a combination of debt and equity from Grasim. Global Infrastructure Partners is a BlackRock unit.

Shell announced on Monday that the transaction should be completed by the end of 2026.

This move reflects a 'wider industry reorientation,' with energy companies such as BP and Equinor reducing their renewable energy investments to focus on?their oil and gas traditional operations.

Shell has also reduced its low-carbon projects under Wael Sawan.

In February, Shell reportedly reviewed strategic options for Sprng Energy. Shell agreed to purchase Sprng Energy in 2022 at a price of $1.55 billion. (Reporting and editing by Leroy Leo, Stephanie Kelly, Nishit Navin, Sethuraman N R; Additional reporting by Nishit Navn)

(source: Reuters)