Shell Sells RISEC Gas Power Station Assets for $715 Million in the U.S.

en.Wedoany.com Reported - On September 10, Shell Energy North America signed agreements for two U.S. gas-fired power generation asset transactions, including the sale of its equity interest in RISEC Holdings to Constellation Energy Generation for $715 million. RISEC holds the Rhode Island State Energy Center in Rhode Island, USA, which consists of two combined-cycle gas units with a total installed capacity of 609 MW, supplying power to the ISO New England electricity market. Both transactions are subject to regulatory approval and are expected to close in the first quarter of 2027.

The RISEC power station is located near Providence, Rhode Island, and was completed and put into operation in 2002, with a maximum installed capacity of 609 MW and an average operating capacity of 594 MW. Since 2019, Shell Energy North America has obtained the energy supply arrangement corresponding to all electricity generated by the power station through an energy conversion agreement. In October 2024, Shell signed an agreement to acquire 100% of the equity of RISEC Holdings and completed the transaction in January 2025; after the completion of this sale to Constellation, the energy conversion agreement between Shell and RISEC that has been in effect since 2019 will also be terminated.

Another transaction conducted simultaneously with the sale of the RISEC assets is Shell Energy North America's acquisition of 100% of the equity of Hunlock Creek Generating LLC. Hunlock and its subsidiaries own 169 MW of natural gas-fired generation capacity in Pennsylvania, including a 125 MW combined-cycle gas power station consisting of two units and a 44 MW simple-cycle peaking power station. These assets are currently held by Riverview Power Holdings LLC, an indirect subsidiary of Castleton Commodities International LLC.

The Hunlock assets are connected to the PJM Interconnection electricity market. After the transaction is completed, Shell Energy North America will obtain the electricity supply and capacity offtake resources corresponding to these 169 MW of gas-fired generation assets. Shell did not disclose the acquisition amount for Hunlock Creek Generating in this transaction, and both transactions are currently at the stage of signed agreements awaiting regulatory approval.

The RISEC assets correspond to the ISO New England market. Shell completed the acquisition of 100% of the equity of RISEC Holdings in January 2025, and signed the $715 million sale agreement approximately 20 months after holding the assets. Constellation Energy Generation will become the buyer in this RISEC equity transaction, and the completion time of the closing remains subject to regulatory approval and the satisfaction of other transaction conditions.