Acquisition of Sprng Energy triples Shell’s renewable capacity
Shell currently has 1 gigawatt (GW) of renewable energy generation capacity in operation, with an additional 3.7 GW under construction and/or committed for sale. The international energy company has a further 38 GW of future renewable generation capacity projects in its pipeline.
On April 29, 2022, Shell Overseas Investment B.V. signed an agreement to acquire Solenergi Power Private Limited for USD 1.55 billion, which includes the Sprng Energy group of companies. Shell Overseas Investment B.V. is a wholly-owned subsidiary of Shell plc (Shell). The acquisition will triple Shell’s current operational renewable energy capacity. The transaction is expected to close later in 2022, following regulatory clearance, and will support Shell’s Powering Progress strategy to become a net-zero emissions energy business by 2050.
With headquarters in Pune, India, Sprng Energy supplies solar and wind power to electricity distribution companies in the rapidly growing Indian market. Currently, Sprng Energy holds 2.9 gigawatts-peak (GWp) of assets and has a healthy growth pipeline that includes an additional 7.5 GWp of renewable energy projects. “This deal positions Shell as one of the first movers in building a truly integrated energy transition business in India,” said Wael Sawan, Shell’s Integrated Gas, Renewables and Energy Solutions Director.
Sprng Energy will operate as a wholly-owned subsidiary within Shell’s Renewables and Energy Solutions Integrated Power business and will retain its existing brand.
Shell’s acquisition of Sprng Energy continues its familiar approach of aggressively acquiring renewable generation capability. The company has recently acquired US-based solar and energy storage specialist, Savion; Italian solar specialist, Solar-Konzept Italia; and WestWind, a wind specialist based in Australia. Shell is also developing prototypes, pilot farms and commercial-scale floating wind farms in France, Ireland, Norway, Scotland and South Korea.