Shell Buys Combined-Cycle Power Plant in Rhode Island
Shell plc
SENA, a part of Shell, purchases a 100% stake in RISEC Holdings.
This will expand Shell's energy portfolio in North America and guarantee an uninterrupted power supply in the region.
Shell Energy North America (SENA), a subsidiary of Shell, has acquired complete ownership of RISEC Holdings.
The latter owns a 609-megawatt combined-cycle gas turbine power plant located near Providence, Rhode Island, USA, which is the main highlight of this acquisition.
This plant is more energy-efficient than single-cycle power plants, emitting fewer pollutants and less emissions. It generates power through burning natural gas and subsequently captures the heat produced during the burning process to create steam, which is then used to produce more electricity. This process provides a continuous supply of electricity.
Through this purchase, SENA cemented its position as a leader in the Independent System Operator New England (ISO New England) power market, where companies compete with one another to supply power. Also, there will be a huge demand for this market in the coming years as measures to reduce carbon emissions in heating and transportation increase energy consumption.
Shell has a six-year relationship with this plant, and now owning it completely, will help the company maintain a steady power supply and reduce market risks.
RISEC was owned by Carlyle and EGCO before the purchase agreement with Shell. This acquisition will also expand Shell's energy portfolio in North America by dealing in power, natural gas, and environmental products.
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Source: Shell
