Last year company acquired solar and energy storage developer Savion
San Francisco, NFAPost: Shell, global energy company, has made it clear that it is focusing on renewables power business as the company accelerates its drive to achieve net zero emission business by 2050.
As part of the strategy, Shell New Energies US LLC, a subsidiary of Royal Dutch Shell plc (Shell), has signed an agreement to buy 100% of Savion LLC (Savion), a large utility-scale solar and energy storage developer in the United States, from Macquarie’s Green Investment Group. With this acquisition in last year, Shell expects to significantly expand its global solar portfolio.
Shell Integrated Gas and Renewables & Energy Solutions Director Wael Sawan said 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 Shell Integrated Gas and Renewables & Energy Solutions Director Wael Sawan.
Savion specialises in developing solar power and energy storage projects and currently has more than 18 gigawatts of solar power and battery storage under development for a variety of customers, including utilities and major commercial and industrial organisations.
The Savion acquisition bolsters Shell’s strategy to develop an integrated power business as it moves to become a net-zero emissions energy business by 2050, in step with society. As part of this strategy, Shell aims to sell more than 560 terawatt hours of power globally per year by 2030: twice as much electricity as the company sells today. The acquisition is expected to close by year end.
Savion’s acquisition will expand Shell’s existing solar and energy storage portfolio, where Shell holds interest in developers such as Silicon Ranch Corporation in the US, Cleantech Solar in Singapore, ESCO Pacific in Australia, owns sonnen, a smart energy storage company in Germany, and EOLFI, a wind and solar developer in France.
Savion is based in Kansas City, Missouri, U.S., and currently employs 126 staff. Savion has a pipeline of more than 18 gigawatts of solar and energy storage projects with over 100 projects under development in 26 states.
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 & 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. According to the EIA, the US is one of the three largest markets globally for renewable energy. This acquisition falls within the 2021 Renewables & Energy Solutions cash capital expenditure budget of $2-3 billion as disclosed at Shell Strategy Day on February 11, 2021.
Shell aims to sell more than 560 terawatt hours globally per year by 2030 as part of its Integrated Power business, twice as much electricity as the company sells today, and expects to serve more than 15 million retail and business customers worldwide as a leading provider of clean Power-as-a-Service.
In February 2021, Shell set forth its Powering Progress strategy, including details of how it will achieve its target to be a net-zero emissions energy business by 2050, in step with society’s progress as it works towards the Paris Agreement goal of limiting the increase in the average global temperature to 1.5°C.
In October 2021, Shell set a target to reduce absolute emissions by 50% by 2030, compared to 2016 levels, which includes all Scope 1 and 2 emissions.For more details on Shell’s Powering Progress strategy, please visit http://www.shell.com/poweringprogress. For more details on Shell’s climate target, please visit www.shell.com/climatetarget.
