Shell Plc on April 29 agreed to acquire India-based renewable power platform Sprng Energy for $1.55 billion, boosting the energy company’s low-carbon output as it shifts away from oil and gas.
Shell said it would buy 100% of Solenergi Power Private Ltd., the flagship company of Sprng Energy group, from U.K.-based investor Actis.
Sprng Energy supplies solar and wind power to electricity distribution companies in India, seen as a major growth market in the power sector in the coming decades.
Sprng Energy’s portfolio consists of 2.9 gigawatts-peak (GWp) of assets and a further 7.5 GWp of renewable energy projects in the pipeline.
The deal will triple Shell's current renewables capacity in operations.
“This deal positions Shell as one of the first movers in building a truly integrated energy transition business in India,” Wael Sawan, Shell’s head of integrated gas and renewables, said in a statement.
The deal is expected to close later this year.
Shell currently has 4.7 gigawatts (GW) of renewable energy generation capacity in operation, under construction or committed to sale. It has a further pipeline of 38 GW in future projects.
The London-based company aims to become a net zero greenhouse-gas emissions company by 2050.
Several international energy companies have invested in India’s renewables and power sector in recent years, including BP through Lighsource BP and TotalEnergies through its 20% holding in Adani Green Energy.
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