Shell plans to buy Sprng Energy Group, one of India's leading renewable energy platforms
A deal was signed today by Actis Solenergi Limited and Shell Overseas Investment B.V. to buy 100% of Solenergi Power Private Limited for $1.55 billion, along with the Sprng Energy group of Companies. Shell Overseas Investment B.V. is a wholly owned subsidiary of Shell plc.
Sprng Energy provides solar and wind energy to Indian power distribution companies. Its portfolio includes 2.9 gigatonnes-peak1 (GWp) of assets (2.1 GWp operating and 0.8 GWp contracted), as well as 7.5 GWp of renewable energy projects in the works.
“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.
“I believe it will enable Shell to become a leader across the power value chain in a rapidly growing market where electrification on a massive scale and strong demand for renewables are driving the energy transition. Sprng Energy generates cash, has an excellent team, strong and proven development track record and a healthy growth pipeline. Sprng Energy’s strengths can combine with Shell India’s thriving customer-facing gas and downstream businesses to create even more opportunities for growth.”
Shell's acquisition of solar and wind assets will triple the company's current renewable capacity in operation and aid in the execution of its Powering Progress strategy. Powering Progress includes the development of a best-in-class integrated power business, which will assist Shell in meeting its goal of becoming a profitable net-zero emissions energy business by 2050.
The transaction is subject to regulatory approval and is scheduled to close in late 2022.
Source: Shell news