Shell New Energies, a subsidiary of Royal Dutch Shell, has signed an agreement to buy a 100% stake in Savion, a utility-scale solar and energy storage developer in the U.S., from Macquarie’s Green Investment Group.
Savion has a pipeline of more than 18 GW of solar and energy storage projects, with over 100 projects under development in 26 states.
The acquisition is expected to close by year-end. Subject to the satisfaction of closing conditions, Savion will be a wholly-owned subsidiary of Shell, operating under its existing brand within Shell’s Renewables and Energy Solutions Integrated Power business.
Shell said the acquisition will bolster its strategy to develop an integrated power business as it aims to become a net-zero business by 2050. As part of this strategy, Shell aims to sell more than 560 TWh of power globally per year by 2030. This is twice as much electricity as the company sells currently.
“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. 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,” said Wael Sawan, Integrated Gas, Renewables and Energy Solutions Director, Shell.
Savion’s acquisition will expand Shell’s existing solar and energy storage portfolio. Shell currently interests developers such as Silicon Ranch Corporation in the U.S., Cleantech Solar in Singapore, and ESCO Pacific in Australia. It also owns Sonnen, a smart energy storage company in Germany, and EOLFI, wind and solar developer in France.
Shell had signed a framework agreement with the renewable energy developer Island Green Power to develop solar photovoltaic projects with co-located battery storage potential in the U.K. The initial collaboration is expected to generate over 700 MW.
Shell partnered with Clearstone Energy to develop several utility-scale solar PV projects in England. The Clearstone Energy projects have a combined export capacity of 100 MW with co-located battery storage potential.
In August, Shell signed an agreement to buy 100% of the equity interests of Inspire Energy Capital, a renewable energy residential retailer.
A growing number of oil and gas companies have been acquiring energy storage companies and expanding their investments in clean energy technologies. According to a report by Mercom Capital Group, in the first nine months of 2021, seven oil and gas and utility majors have acquired battery storage companies and projects.
Arjun Joshi is a staff reporter at Mercom India. Before joining Mercom, he worked as a technical writer for enterprise resource software companies based in India and abroad. He holds a bachelor’s degree in Journalism, Psychology, and Optional English from Garden City University, Bangalore. More articles from Arjun Joshi.