Shell sells European onshore renewables to TotalEnergies
By Stephanie Kelly
Shell's Strategic Shift and Deal Details
Background and Rationale
Aug 3 (Reuters) - Shell is selling its onshore European renewables unit to TotalEnergies, the UK energy major said on Monday, as it continues to scale back its low-carbon investments to focus on upstream operations and trading.
Shell said the deal agreed with TotalEnergies includes assets across Italy, the Netherlands, Spain and the UK, but did not disclose the sale price.
Leadership and Corporate Direction
Since taking over as Shell CEO three years ago, CEO Wael Sawan has shifted focus away from renewables.
Financial Performance
Last week, the group reported that second-quarter profit more than doubled from a year earlier to their second highest on record, helped by higher energy prices and stronger LNG trading.
Future Focus and Business Strategy
Shell also said on Monday that it wants to focus its power business on supplying large customers with energy solutions that combine renewable power with less intermittent hydrocarbon-based generation.
Deal Scope and Asset Portfolio
The deal with TotalEnergies, expected to complete by the end of 2026, includes a portfolio of about 500 megawatts of solar and wind assets in operation or under construction, mainly located in Italy and the Netherlands, and a 3.5 gigawatt-pipeline of solar, wind and battery storage projects in Italy, the United Kingdom and Spain, Total said.
Related Transactions
TotalEnergies also announced a separate sale of a 50% stake in a 1.2 GW European renewables portfolio to global investment firm KKR, valuing the portfolio at €1.8 billion ($2.08 billion).
Total said both transactions were in line with its strategy to build renewable and gas-fired power generation capacity in key deregulated markets while selling down up to half of its renewables holdings at a profit.
TotalEnergies' Renewables Ambitions
Total's European renewables asset portfolio amounts to almost 10 gigawatts of gross installed capacity or capacity under construction, and 27 gigawatts under development.
($1 = 0.8674 euros)
(Reporting by Stephanie Kelly and Shadia Nasralla in London, America Hernandez in Paris and Prerna Bedi in Bengaluru; Editing by Rashmi Aich, Louise Heavens and Susan Fenton)
