Shell Expands Investment in U.S. Green Energy Sector

first_imgShell Expands Investment in U.S. Green Energy Sector FacebookTwitterLinkedInEmailPrint分享Houston Chronicle:Shell Oil Co. plans to plow around $200 million into a Tennessee solar company, the latest deal that finds a major oil company investing in renewable energy as the industry prepares for a day when crude demand plateaus.A unit of Houston’s Shell Oil will purchase almost half of Silicon Ranch Corp., a Nashville company that operates solar projects around the United States, for up to $217 million, the company’s biggest investment in utility-scale solar energy yet, the company said on Monday. Shell Oil is the U.S. subsidiary of Royal Dutch Shell, the Anglo-Dutch oil major.The transaction is Shell’s answer to growing demand it sees for renewable energy options in the United States, said Marc van Gerven, vice president of solar for Shell New Energies, a business unit that focuses on alternative energy. Like its big oil rivals in Europe and the U.S., Shell is angling for a position in a rapidly growing sector that analysts say could provide a steady stream of profits in coming years as renewable energy technologies advance and oil demand falters.In recent years, as the fossil fuel industry has faced increasing regulations and public pressure aimed at slowing climate change, major European oil companies such as Shell have made investments in Texas and around the world to prepare for a low carbon future. For instance, the British oil giant BP operates four wind farms in Texas. Late last year, Total signed an agreement with the French merchant power company Engie to acquire its portfolio of liquefied natural gas – the cleanest burning fossil fuel – for $1.49 billion.For Shell, which already has interest in six wind farms and trades renewable energy, the Silicon Ranch transaction adds to a growing renewable business. If regulators determine that the deal does not violate anti-trust laws, Shell will acquire a 43.83 share in Silicon Ranch, with an option to expand its shares by 2021, the company said. Shell’s stake in the company will include around 800 megawatts of solar projects currently operating or under contract. More: Shell invests in solar, but still plowing money into oillast_img

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