Shell Sells Approximately 4 GW of Onshore Renewable Assets in Four European Countries Including Italy and the Netherlands to TotalEnergies

en.Wedoany.com Reported - Shell announced on Monday (August 3) that it will sell all of its onshore renewable energy operations in Europe to TotalEnergies.

This is the latest step by the British oil company to refocus on integrated gas and liquefied natural gas (LNG) operations and reduce its direct exposure to renewable power generation. Machteld de Haan, Shell's President of Downstream, Renewables and Energy Solutions, stated that Shell is reallocating capital to prioritize areas where it has differentiated capabilities and can create the greatest long-term value, including asset-backed power trading and customer-centric energy solutions.

TotalEnergies stated that the acquisition aims to expand its presence in the European power market and complement the flexible generation capacity provided by its controlled gas-fired thermal power plants. The transaction value was not disclosed, involving approximately 4 GW of renewable energy assets and projects across four European countries.

The portfolio includes 500 MW of solar and wind assets that are either operational or under construction, primarily located in Italy and the Netherlands; it also includes a 3.5 GW pipeline of solar, wind, and battery storage projects spread across Italy, the United Kingdom, and Spain.

The transaction is expected to be completed by the end of 2026, subject to regulatory approval. Upon completion, the entire portfolio will come under TotalEnergies' control.

TotalEnergies stated that this acquisition complements its power generation business in four countries considered key markets for implementing its Integrated Power strategy in Europe. With the inclusion of these assets, the company's total installed capacity portfolio in Europe that is either operational or under construction will approach 10 GW, with an additional 27 GW under development.

Alongside the acquisition of Shell's assets, TotalEnergies also announced the sale of a 50% stake in its European portfolio of 1.2 GW of onshore solar and wind assets to an insurance account managed by global management firm KKR. The portfolio has an enterprise value of €1.8 billion and involves assets located in Germany, Spain, France, and Poland. TotalEnergies will retain a 50% stake in these projects and will continue to operate them after the transaction, which is expected to close in 2026.

These two transactions are part of TotalEnergies' financial strategy for its renewables segment. The strategy is based on acquiring and developing assets, followed by the partial sale of stakes in mature operational projects to recycle capital and fund new investments.

Stéphane Michel, President of TotalEnergies' Gas, Renewables and Power division, stated that acquiring Shell's European onshore renewable assets strengthens TotalEnergies' power generation position in strategically open electricity markets on the continent and supports its integrated strategy across the entire power value chain, complementing the flexible generation capacity of gas-fired thermal power plants under the TTEP joint venture with EPH. He also noted that the agreement with KKR once again demonstrates TotalEnergies' ability to execute its business model in the renewable energy sector, contributing to the Integrated Power division's goal of achieving a 12% average return on capital employed (ROACE) by 2030.