Shell closes in on $1.8bn deal for Indian renewable power developer amid low-carbon push
Shell is closing in on a deal for Sprng Energy (Sprng) as it looks to speed up its shift to low-carbon energy and expand its presence in India.
The oil and gas giant is preparing to buy the Indian renewable power developer from private equity group Actis.
Sprng Energy develops solar and wind farms in India, and has been placed in a competitive sales process for the past few months.
However, Shell has seen off rival bidders, and is expected to sign an agreement in the next 2-3 weeks valuing Sprng at $1.8bn, according to Bloomberg.
Sprng Energy has about 1.6 gigawatts (GW) of solar power and almost 500 megawatts (MW) of wind capacity.
It was initially set up by Actis with a commitment of $450m.
Shell is Europe’s biggest fossil fuel – making profits of $19.3bn last year – and is seeking new opportunities in low-carbon energy.
The company has committed to eliminating its carbon footprint to net zero by 2050.
It has revealed it has 4GW of solar projects in its portfolio or under development, and more than 8GW of onshore and offshore wind projects.
Nevertheless, Shell has only a limited presence in the Indian renewables market to date. with a 20 per cent stake in rooftop solar power company Orb Energy.
India is a fast-growing market for wind and solar power, with the government targeting 500GW of renewable capacity by 2030, around five times present levels.
It is unlikely the deal will be wrapped up before Shell reports its first-quarter results next week.
Shell refused to comment when approached by City A.M.