Shell Wind Energy and Savion Equity, both subsidiaries of Shell plc, have entered into an agreement to divest part ownership in two U.S.-based renewable projects to InfraRed Capital Partners. This strategic move demonstrates Shell’s commitment to pursuing dilutions in ownership from power interests while retaining access to renewable electrons through selective offtake agreements.

Under the terms of the agreement, Shell will sell a 60% interest in Brazos Wind Holdings, a prominent 182 MW onshore wind farm located in Fluvanna, Texas. Additionally, Shell will divest a 50% interest in Madison Fields, a significant 180 MW solar development situated in Madison County, Ohio.

Moreover, Shell will retain 100% of the power offtake from the Brazos project through Shell Energy North America. The Madison Fields project will uphold its existing corporate PPA with a third party. Furthermore, Shell will continue to serve as the asset manager for both Brazos and Madison Fields, with the projects benefiting from Inflation Reduction Act tax credits.

The sale of these assets is anticipated to be finalized by early next year, with an effective date of this month, signifying a pivotal milestone in the strategic realignment of Shell’s renewable energy portfolio.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The energy market is highly volatile, and readers should conduct thorough research before making any investment decisions.