December 12, 2023 [Renewable Now]- Shell Plc has clinched a deal to offload part of its stakes in two renewable power projects in Texas and Ohio to London-based infrastructure investment manager InfraRed Capital Partners.
The transactions will be carried out by the oil and gas major’s subsidiaries Shell Wind Energy Inc and Savion Energy LLC, according to a press release on Monday. Financial details were not available.
Specifically, Shell will sell 60% of its stake in Brazos Wind Holdings LLC, which owns a 182-MW wind repowering project in Fluvanna, Texas with a targeted completion early next year, as well as a 50% interest in Madison Fields Class B Member LLC. The latter is the owner of a 180-MW solar park project in Ohio’s Madison County planned to go live by end-2023.
“This agreement follows our guidance at Shell’s Capital Markets Day to pursue dilutions in ownership from power interests while maintaining access to renewable electrons via select offtake agreements,” said Glenn Wright, senior vice President Shell Energy Americas.
Both deals are expected to be finalised by early 2024, with effect from December 2023. Post closing, Shell will be the asset manager of the two projects, both of which will benefit from Inflation Reduction Act (IRA) tax credits, it said.
Shell Energy North America will continue to be the sole off-taker of the Brazos wind farm’s output and Madison Fields will still be run under its existing power purchase agreement (PPA) with a third party.
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