Shell New Energies US has agreed to acquire Savion, a US-based utility-scale solar and energy storage developer, from Macquarie’s Green Investment Group (GIG) for an undisclosed price.
Through the acquisition, the subsidiary of Royal Dutch Shell expects to considerably grow its global solar and energy portfolio.
Currently, Shell has stakes in developers such as Silicon Ranch, Cleantech Solar, ESCO Pacific, sonnen, and EOLFI.
Savion, which is headquartered in Kansas City, was founded in 2019. The company’s projects are said to be in various phases across 27 states in the US.
It was formed after GIG’s acquisition of the solar and energy storage business of Tradewind Energy. At the time of the acquisition by GIG, Savion had 6GW pipeline of utility-scale solar and energy storage projects in development.
Currently, it has over 18GW of solar power and battery storage under development for a range of customers, including utilities and major industrial and commercial organisations.
Post-acquisition, Savion will operate under its existing brand within Shell’s renewables and energy solutions integrated power business.
Shell integrated gas and renewables and energy solutions director Wael Sawan said: “Savion’s significant asset pipeline, highly experienced team, and proven success as a renewable energy project developer make it a compelling fit for Shell’s growing integrated power business.
“As one of the fastest-growing, lowest-cost renewable energy sources, solar power is a critical element of our renewables portfolio as we accelerate our drive to net zero.”
According to Shell, the acquisition strengthens its strategy of developing an integrated power business as it tranforms into a net-zero emissions energy business by 2050.
As part of the strategy, the company is targeting to sell over 560TWh of electricity per year around the world by the end of this decade. This is two times the electricity that Shell sells as of now.
The transaction is anticipated to close by the end of 2021.
Earlier this month, Kentucky Governor Andy Beshear had announced to advance the $231m Martin County solar project, which is being developed by Savion. The 200MW solar energy generation facility is being built on a reclaimed coal mine.
