Full acquisition of sonnen by Shell will catapult the German company to the likes of Tesla’s Powerwall and LG Chem’s RESU, said Wood Mackenzie’s GTM. For Shell it means a strengthening of its renewables strategy within the business.
- Royal Dutch Shell has announced it will acquire 100% of sonnen of Germany and turn it into its wholly owned subsidiary
- This acquisition will come into force after regulatory approval and completion
- The 2 said this deal will enable the companies to offer innovative integrated energy services and electrical vehicle charging solutions and the provision of grid services that are based on sonnen’s virtual battery pool
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Following its initial investment in German energy storage company Sonnen in May 2018, global oil and gas giant Royal Dutch Shell plc has now moved to acquire the company completely and make it a wholly owned subsidiary of Shell New Energies division that focuses on power and new fuels for transport. The acquisition will be complete after regulatory approval and completion.
Shell says full ownership of sonnen will allow the storage company to offer more choice to its customers who seek reliable, affordable and cleaner energy. CEO and Co-Founder of sonnen, Christoph Ostermann said Shell will help drive the growth of his company to a new level and help speed up the transformation of the energy system.
Without sharing any more details, the official statement from Shell read, “The agreement will accelerate the ability of the two companies to offer innovative integrated energy services and electric vehicle charging solutions, and the provision of grid services that are based on sonnen’s virtual battery pool.”
Reuters reported sonnen will continue to operate from its current location in Germany and its top management would stay on.
In May 2018, Shell Ventures led a financing round of €60 million ($67.4 million) to enable Sonnen in implementing its international growth strategy.
Wood Mackenzie’s GTM sees this as a deal that works really well for sonnen as Shell can integrate energy storage with a number of other services since it manages a full stack of energy services including generation, trading and customer relationships. This association can propel Sonnen to a new scale and customer awareness as it competes with Tesla’s Powerwall and LG Chem’s RESU for customers that want to control their home energy, said GTM.
For Shell the arrangement fits into its strategy to include more of renewables in its business mix. In solar, it has already invested in several companies across continents, with the last deal being its 49% acquisition in Singapore’s Cleantech Solar in December 2018 with an option to increase stake after 2021 (see Shell Acquires 49% Stake In Cleantech Solar). Other investments in the new energy field are wind start-up Makani and US EV charging company Greenlots.