Royal Dutch Shell Plc on July 27 said it would buy U.S.-based renewable energy residential retailer Inspire Energy Capital LLC as the European supermajor looks to accelerate its low-carbon strategy.
The acquisition advances Shell’s “Powering Progress” strategy to build and scale renewable and low-carbon businesses with a target to become a net-zero emissions energy business by 2050, in step with society, according to a company release.
“Our goal is to become a major provider of renewable and low-carbon energy, and this acquisition moves us a step closer to achieving that,” commented Elisabeth Brinton, executive vice president of renewables and energy solutions at Shell, in the release.
Shell, like other major oil and gas companies, has come under pressure to cut greenhouse-gas emissions. Recently, the Anglo-Dutch company announced it plans to seek ways to accelerate its energy transition strategy that includes deepening carbon emission cuts following a landmark ruling in May by a Dutch court.
“This deal instantly expands our business-to-consumer power offerings in key regions in the U.S.,” Brinton continued, “and we are well-positioned to build on Inspire’s advanced digital capabilities to allow more households to benefit from renewable and low-carbon energy.”
Shell New Energies US LLC, a subsidiary of Royal Dutch Shell, agreed to buy 100% of the equity interests of Inspire, which has joint headquarters in Santa Monica, Calif., and Philadelphia. The terms of the transaction weren’t disclosed.
Inspire offers renewable energy to customers via a variety of innovative services and subscription plans and incentivizes customers to manage energy usage via a rewards program within its mobile app. The company currently serves approximately 235,000 residential customers in Delaware, Illinois, Massachusetts, Maryland, New Jersey, New York, Ohio, Pennsylvania and Washington DC.
Subject to regulatory clearance and the satisfaction of closing conditions, Shell expects to complete the acquisition by fourth-quarter 2021.