Shell acquires Savion to expand global renewables business

A subsidiary of Royal Dutch Shell has agreed to buy the U.S.-based large utility-scale solar and energy storage developer, Savion, in an undisclosed deal to expand its global solar portfolio as part of its push for net zero emissions.

The transaction by Shell New Energies US LLC is planned to be wrapped up by the end of the year, with the company confirming that the acquisition from Macquarie’s Green Investment Group adds on to its previous investment in U.S. solar power operator Silicon Ranch.

Based in Kansas City, Missouri, Savion currently has more than 18GW of solar and battery storage under development across more than 100 projects in 26 states for various clients. Earlier in December, Savion obtained approval from the Kentucky Economic Development Finance Authority (KEDFA) for an up to 200-MW solar project in Kentucky.

“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,” Wael Sawan, Integrated Gas and Renewables & Energy Solutions Director at Shell, said in a statement. 

“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,” he added.

According to analysts, the acquisition is expected to boost Shell’s global solar portfolio significantly and help speed up its strategy to develop an integrated power business. As part of this strategy, Shell aims to sell more than 560 terawatt hours of power globally per year by 2030: twice as much electricity as the company sells today.

Apart from Silicon Ranch Corporation, the group already holds interest in developers such as Cleantech Solar in Singapore and ESCO Pacific in Australia. It also owns German smart energy storage firm Sonnen and French wind and solar developer EOLFI.