Shell is preparing to sell its offshore wind power portfolio for approximately $1 billion, effectively marking its exit from the renewable energy development business.
The sale process could begin as early as the end of this year, with the transaction expected to be completed in 2027. To manage the deal, the company has hired financial advisers Rothschild & Co and PJT Partners.
This is not Shell’s first step in this direction. The company has already sold its European onshore renewables division, as well as India-based Sprng Energy, which it acquired in 2022 for $1.55 billion. Last year, Shell also withdrew from offshore wind projects in Scotland.
The strategic shift began in 2023 following a change in leadership. Under CEO Wael Sawan, Shell moved away from its previous focus on a “green” future and instead prioritized shareholder returns, scaling back low-margin projects and refocusing on hydrocarbons and liquefied natural gas (LNG).
Shell is not alone in this trend. Last year, BP announced a 20% increase in investment in oil and gas while cutting renewable energy spending by $5 billion. At the time, BP’s CEO stated that the company had moved away from fossil fuels too quickly and that expectations for the pace of the green energy transition had been overly optimistic.
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