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Shell Sells European Onshore Renewable Business to TotalEnergies
🇦🇹 Austria /Environment & Climate

Shell Sells European Onshore Renewable Business to TotalEnergies

From Die Presse · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Shell is selling its European onshore renewable energy business, including assets in Italy, the Netherlands, Spain, and the UK, to French competitor TotalEnergies.
  • The deal includes approximately 500 megawatts of solar and wind power capacity in operation or under construction, plus a 3.5 gigawatt project pipeline.
  • This sale reflects Shell's strategy to scale back investments in renewables and focus on its traditional exploration and trading business, while TotalEnergies aims to expand its renewable capacity in key markets.

Shell has agreed to sell its European onshore renewable energy business to French energy giant TotalEnergies. The transaction encompasses assets located in Italy, the Netherlands, Spain, and the United Kingdom, as announced by Shell on Monday. The company did not disclose the purchase price, but the deal is expected to be finalized by the end of 2026.

The transaction comprises assets in Italy, the Netherlands, Spain and Great Britain, Shell announced on Monday.

— Source (Die Presse)Detailing the scope of the asset sale.

The portfolio includes approximately 500 megawatts of solar and wind power generation capacity, either already operational or under construction. Additionally, it features a project pipeline of 3.5 gigawatts. In a related move, TotalEnergies announced it would sell a 50 percent stake in another European renewable portfolio, valued at 1.8 billion euros, to the financial investor KKR. This separate portfolio has a capacity of 1.2 gigawatts.

These divestments highlight diverging strategies between the two energy companies. Shell's CEO Wael Sawan, since taking office three years ago, has been reducing investments in renewable energy to concentrate more on the company's traditional oil and gas exploration and trading operations. This move signals a further step away from renewable energy ventures for Shell in Europe.

Shell CEO Wael Sawan has been scaling back investments in renewable energy since taking office three years ago to focus more on the classic exploration and trading business.

— Source (Die Presse)Explaining Shell's strategic shift away from renewables.

TotalEnergies, conversely, stated that these transactions align with its strategy to build capacity in key markets. The French company aims to grow its renewable energy footprint while also strategically divesting up to half of its renewable assets for profit. TotalEnergies currently boasts a total installed or under-construction renewable capacity of nearly ten gigawatts across Europe.

The transactions are in line with the strategy to build capacity in key markets while selling up to half of its own renewable assets at a profit.

— TotalEnergiesDescribing TotalEnergies' rationale for the acquisition and subsequent partial sale.
DistantNews Editorial

Originally published by Die Presse in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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