Shell to acquire Indian renewable energy platform Sprng Energy for $1.5bn
Shell will spend $1.55 billion to acquire Sprng Energy, a renewable energy platform in India owned by global investment firm Actis.
In this regard, Shell has executed a definitive agreement through its fully-owned subsidiary — Shell Overseas Investment with Actis Solenergi to acquire Solenergi Power Private Limited, the Mauritius-based holding company for Sprng Energy.
Based in Pune, Sprng Energy delivers solar and wind power to electricity distribution firms in India.
It was established in 2017 by Actis with an initial seed asset of 330MWp.
Sprng Energy today has 10.4GWp of assets, of which 2.9GWp are operating, of which 800MWp capacity is contracted. An additional 7.5GWp of renewable energy projects are in the pipeline for the company.
Shell said that the solar and wind projects it will gain from Sprng Energy will increase its current renewable capacity in operation by three times and help execute its Powering Progress strategy.
Under the strategy, Shell plans to build an integrated power business to help achieve its goal of transitioning into a profitable net-zero emissions energy business by the year 2050.
Shell to acquire Indian renewable energy platform Sprng Energy for $1.55bn from Actis. Image courtesy of seagul from Pixabay.
Wael Sawan — Shell’s Integrated Gas, Renewables and Energy Solutions Director said: “This deal positions Shell as one of the first movers in building a truly integrated energy transition business in India.
“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 deal, which is subject to regulatory approval, is likely to close later this year. Post-acquisition, Sprng Energy will continue under its existing brand and operate as a fully-owned subsidiary of Shell under the latter’s Renewables and Energy Solutions Integrated Power business.