Shell Acquires Interest In US PV Developer

Shell Signs Agreement With American Developer And Operator of Solar Power Plants Silicon Ranch Corporation For 43.83% Interest
01:07 AM (Beijing Time) - 18. January 2018
Silicon Ranch Corporation Shell

Based on the agreement signed between Silicon Ranch and Shell, the Dutch oil-gas company is gaining a 43.83% stake in the US-based solar developer, which will continue to operate under its existing management and brand name. Pictured are: (standing left to right:) Silicon Ranch board member Byron Smith; Shell GM Solar Projects, Shell New Energies, Boris Schubert; Silicon Ranch Co-Founder and CFO Reagan Farr; Silicon Ranch Chief Corporate Development Officer David Vickerman; (sitting left to right:) Silicon Ranch Chairman Phil Bredesen; Shell VP of Solar Marc van Gerven; Silicon Ranch Co-Founder and CEO Matt Kisber. (Photo Credit: Silicon Ranch Corp.)

Key Takeaways

  • Shell has signed an agreement with US-based Silicon Ranch Corp. to acquire a stake of 43.83%
  • It will pay between $193 and $217 million in cash to the US solar power plant developer and operator, depending on the achievement of some predetermined milestones
  • Shell has the option to increase its stake in Silicon Ranch after 2021
  • The transaction will be closed in Q1/2018, depending on regulatory approvals

Royal Dutch Shell PLC has signed an agreement with US-based solar power plant developer and operator Silicon Ranch Corp. to acquire a 43.83% share of its business. Shell will be purchase the shares from Partners Group, a global private markets investment manager based out of Switzerland.

Shell will pay for the shares between $193 and $217 million in cash based on the achievement of some predetermined milestones by Silicon Ranch. There is a possibility to increase its position after 2021. Once regulatory approvals are in place, the transaction is scheduled for closure in Q1/2018.

Silicon Ranch has an existing portfolio of around 880 MW of projects in operation or contracted. The Tennessee, US-based developer has close to 1 GW more in its development pipeline. Its major clients are electric cooperatives, military partners and corporate customers in the US. With this development, Silicon Ranch will continue to operate under its existing management and brand name.

While Silicon Ranch will be able to quicken its growth strategy, enter new markets and expand product offerings across its portfolio with Shell investing in it, the oil and gas giant will gain a “platform to establish a successful solar business.”

Partnering with Silicon Ranch Corp. progresses our New Energies strategy and provides our US customers with additional solar renewable options,” said Marc van Gerven, Shell’s vice president of solar. He added, “With this entry into the fast-growing solar sector, Shell is able to leverage its expertise as one of the top three wholesale power sellers in the US, while expanding its global New Energies footprint.”

Shell’s new energies business focuses on low-carbon generation and storage. Of late, it has announced a number of milestones for its solar business – it invested into Singapore based solar developer Sunseap Group (see Shell Invests In Singapore PV Firm); and recently, it announced a 20 MW solar project to power its chemical complex in the Netherlands (see Shell Setting Up 20 MW PV Plant In Holland).  

 

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani