Savion, Shell’s Solar Business, Puts 10.6 GW of Assets Up for Sale to Optimize Portfolio
Savion, Shell’s U.S. solar business, has put approximately 25% of its assets, totaling up to 10.6 gigawatts (GW) of solar generation and storage, up for sale. This strategic move aligns with Shell’s CEO Wael Sawan’s direction to divest from owning renewable projects.
Asset Overview
The assets in question, spread across the northeast, southeast, and west of the United States, are part of Savion’s extensive portfolio. The exact value of the assets remains undisclosed, and the sale, managed by investment bank Jefferies, is a crucial step in optimizing Shell’s renewable energy focus.
Shift in Shell’s Strategy
Shell’s acquisition of Savion in December 2021 was part of a broader strategy to expand in the low-carbon energy market. However, under CEO Wael Sawan’s leadership, there has been a pronounced shift. The company now seeks to prioritize access to low-carbon power for selling and trading over owning generation assets.
Focus on Profitable Ventures
CEO Sawan, who took office in January 2023, emphasizes focusing on the most profitable ventures. Shell’s renewed strategy revolves around concentrating on higher-margin projects, maintaining steady oil output, and increasing natural gas production.
Streamlining Operations
The asset sale, including those in the “Dasher” portfolio, enables Savion to streamline its focus on executing Shell’s integrated power markets strategy. This move follows Shell’s recent divestments, including power retail businesses in Britain and Germany, floating offshore wind projects, and reductions in its hydrogen business.
Shell’s ongoing efforts to optimize its operations and achieve cost savings include company-wide staff reductions, particularly in its low-carbon solutions division, with a target to save up to $3 billion.
Source：https://www.theglobeandmail.com
