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Shell buys Indian renewables firm Sprng Energy for $1.55 billion

Shell to acquire Sprng Energy group, one of India’s leading renewable power platforms

Sprng Energy supplies solar and wind power to electricity distribution companies in India. Its portfolio consists of 2.9 gigawatts-peak1 (GWp) of assets (2.1 GWp operating and 0.8 GWp contracted) with a further 7.5 GWp of renewable energy projects in the pipeline.

“This deal positions Shell as one of the first movers in building a truly integrated energy transition business in India,” said Wael Sawan, Shell’s Integrated Gas, Renewables and Energy Solutions Director. “I believe it will enable Shell to become a leader across the power value chain in a rapidly growing market where electrification on a massive scale and strong demand for renewables are driving the energy transition. Sprng Energy generates cash, has an excellent team, strong and proven development track record and a healthy growth pipeline. Sprng Energy’s strengths can combine with Shell India’s thriving customer-facing gas and downstream businesses to create even more opportunities for growth.”

The solar and wind assets Shell acquires through the deal will triple Shell’s present renewable capacity in operation and help deliver its Powering Progress strategy. An important part of Powering Progress is to develop a best-in-class integrated power business, which will help Shell to reach its target of becoming a profitable net-zero emissions energy business by 2050.

The transaction is subject to regulatory clearance and is expected to close later in 2022.

Notes to editors

  • Solenergi Power Private Limited (“SPPL”) is incorporated in Mauritius and is the direct shareholder of the Sprng Energy group of companies in India.
  • Sprng Energy will retain its existing brand and operate as a wholly owned subsidiary of Shell within Shell’s Renewables and Energy Solutions Integrated Power business. It is headquartered in Pune, India. For more, visit https://sprngenergy.com/.
  • In India, Shell’s existing gas business (Shell Energy) serves customers through a fully-owned and integrated value chain – competitive supply from a global LNG portfolio, re-gasification at the Hazira facility, and downstream customer sales. Shell has invested in companies like Husk Power Systems and Cleantech Solar Pte Ltd. For more, visit Shell India.
  • Globally, Shell is investing in building our generation capacity. We have 1 GW of renewable generation capacity in operation, and a total of 4.7 GW in operation, under construction and/or committed for sale. We have a further 38 GW of renewable generation capacity in our pipeline of future projects. We have added to our renewable generation capabilities by acquiring Savion, a US-based solar and energy storage specialist; Solar-Konzept Italia, an Italian solar specialist; and WestWind, a wind specialist based in Australia. Shell is one of the leading developers of floating wind farms in the world with prototypes, pilot farms and commercial-scale projects in development in France, Ireland, Norway, Scotland and South Korea. For more, visit Energy Transition Progress Report 2021.
  • In February 2021, Shell announced its Powering Progress strategy, including details of how it expects to achieve its target to be a net-zero emissions energy business by 2050. For more, visit http://www.shell.com/poweringprogress.
  • Actis is a leading global investor in sustainable infrastructure. For more, visit https://www.act.is/

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Forward-looking statements

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Shell’s Net Carbon Footprint

Also, in this press release we may refer to Shell’s “Net Carbon Footprint” or “Net Carbon Intensity”, which include Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “Net Carbon Footprint” or “Net Carbon Intensity” are for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s net-zero emissions target

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EXTRACT FROM RELATED REUTERS ARTICLE

LONDON, April 29 (Reuters) – Shell (SHEL.L) on Friday agreed to acquire India-based renewable power platform Sprng Energy for $1.55 billion, boosting the energy company’s low-carbon output as it shifts away from oil and gas.

Reporting by Ron Bousso; editing by Jason Neely
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