Shell sells European renewables to TotalEnergies
Shell sold its onshore European Renewables Unit to TotalEnergies on Monday. The UK energy giant continues to reduce its low-carbon investment to focus on its upstream operations and trade.
Shell did not reveal the price of the TotalEnergies deal, but said that it included assets in Italy, Spain, the Netherlands and the UK.
Wael Sawan, the CEO of Shell, has moved away from renewables since he became CEO in 2013.
The group announced last week that the second-quarter profits more than doubled compared to a year ago, and reached their second highest level ever, thanks to higher energy prices, as well as stronger LNG trading.
Shell said on Monday that they 'want to focus their power business in providing large customers with energy solution that combine renewables with less intermittent hydrocarbon based generation.
Total Energy said that the deal with TotalEnergies is expected to be completed by the end 2026. It includes a portfolio consisting of 500 megawatts in solar and wind assets, which are mainly located in Italy and the Netherlands. Also included in the deal was a pipeline of 3.5 gigawatts in solar, wind, and battery storage in Italy, United Kingdom, and Spain.
TotalEnergies announced a sale of a 50% share in a?1.2 GW European'renewables? portfolio to global investment company KKR. The portfolio was valued at EUR1.8 billion (2.08 billion dollars).
Total said that both transactions were consistent with its strategy of building renewable and gas-fired generation capacity in key deregulated markets, while selling off up to half its renewables holdings for a profit.
Total's European Renewables Asset Portfolio is almost 10 Gigawatts in gross installed capacity, or?capacity currently under construction. There are also 27 Gigawatts still under development.
(source: Reuters)
