Shell’s U.S. Solar Business Savion Puts Assets Up for Sale
Savion Initiates Sale of Solar Assets with Jefferies
Shell’s U.S. solar business, Savion, has decided to sell around a quarter of its assets, marking a strategic move under CEO Wael Sawan’s leadership. Investment bank Jefferies is overseeing the sale of up to 10.6 gigawatts (GW) of solar generation and storage assets currently under development.
Value and Locations of the Assets
The total value of these assets, spread across the northeast, southeast, and west of the United States, remains undisclosed. Project valuations are often influenced by local power prices. Savion, with its 39.1 GW solar and storage projects, has already completed sites with a capacity exceeding 2.3 GW.
Shell’s Transition Strategy
Shell acquired Savion in December 2021 as part of its low-carbon energy market expansion. CEO Wael Sawan aims to focus on more profitable ventures and access low-carbon power for trading, rather than owning generation assets with lower returns. The company’s focus now lies on high-margin projects and enhancing oil production.
Renewables Market Outlook
Although renewables valuations have declined, these assets remain crucial for the energy transition. As interest rates decrease, there is renewed interest in renewable projects according to a report by KPMG. Selling the U.S. portfolio, named “Dasher,” will allow Savion to concentrate on executing Shell’s integrated power markets strategy.
Shell’s Overall Restructuring
Shell’s recent divestments include selling its power retail businesses in Britain and Germany, exiting floating offshore wind projects, reducing its hydrogen business, and considering exits from refining operations and onshore oil business in Nigeria. The company is also making staff reductions company-wide to save up to $3 billion, focusing on streamlining operations.
