Shell New Energies, a subsidiary of Royal Dutch Shell, has purchased Savion, a utility-scale solar and energy storage developer in the United States, from Macquarie’s Green Investment Group for a 100 per cent interest. With over 100 projects in construction in 26 states, Savion has a pipeline of more than 18 GW of solar and energy storage projects. The acquisition was completed on December 17, 2021.
According to a previous company release, after the acquisition Savion will be a wholly-owned subsidiary of Shell, operating under its existing identity inside Shell’s Renewables and Energy Solutions Integrated Power business, subject to closing conditions being fulfilled. As per Shell’s statement, the acquisition will help it establish an integrated power business in order to achieve its goal of becoming a net-zero company by 2050. Shell plans to sell more than 560 TWh of power per year globally by 2030 as part of this strategy. This is more than double the amount of electricity the company sells at present.
Recently, Shell signed an agreement to buy 100 per cent of the equity interests of Inspire Energy Capital LLC (Inspire), a renewable energy residential retailer with joint headquarters in Santa Monica, CA and Philadelphia, PA. Shell also partnered with Clearstone Energy to develop several utility-scale solar PV projects in England. The Clearstone Energy projects have a combined export capacity of 100 MW with co-located battery storage potential.
REGlobal’s Views: With more than 18 GW of solar and energy storage projects under development, Savion’s acquisition gives Shell a massive project portfolio to bring it closer to clean energy transition goals. Further, it solidifies Shell’s position in the attractive renewable energy space of United States as these projects will cater to not only utilities but also large commercial and industrial customers.