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Investment bank Jefferies is running the sale of up to 10.6
gigawatts (GW) of solar generation and storage assets currently
in development, or parts of those projects, according to the
document sent to potential investors and seen by Reuters.
The total value of the assets, located in the northeast,
southeast and west of the United States, was unclear. Project
valuations often depend on power prices where they are located.
Spokespeople for Shell and Jefferies declined to comment.
Savion is developing 39.1 GW of solar and storage projects, and
has completed sites with capacity of more than 2.3 GW, according
to its website.
Shell acquired Savion for an undisclosed sum in December 2021 as
part of a drive under former CEO Ben van Beurden to grow in the
low-carbon energy market and reduce its carbon footprint.
Over two years on, the sale process marks the latest step in
Shell's shift under Sawan, who has vowed to focus on the most
profitable businesses since taking office in January 2023.
In June, Sawan said Shell wanted to focus on accessing
low-carbon power which it could sell and trade rather than
owning the generation assets, where returns are usually lower.
Shell now aims to focus on higher-margin projects, steady oil
output and boosting natural gas production.
Renewables valuations have decreased but these assets will
remain pivotal to the energy transition and generate attention
as interest rates begin to decline, KPMG said in a report
earlier this month.
Selling the U.S. portfolio, dubbed "Dasher," will allow Savion
to "focus on executing on Shell's integrated power markets
strategy," the document said.
Shell recently sold its power retail businesses in Britain and
Germany, exited a number of floating offshore wind projects and
reduced its hydrogen business. It is also seeking to exit some
refining operations and its onshore oil business in Nigeria.
Shell has also started to make company-wide staff reductions,
including in its low-carbon solutions division, in a drive to
save up to $3 billion.
(Reporting by Isla Binnie in New York, and Andres Gonzalez and
Ron Bousso in London; Editing by Simon Webb and Chris Reese)
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