Shell buys Indian renewables firm Sprng Energy for $1.55 billion

The logo of Shell is seen at petrol station in Spielberg
The logo of Shell plc is seen at a petrol station in Spielberg, Austria March 18, 2022. REUTERS/Leonhard Foeger

LONDON, April 29 (Reuters) - Shell (SHEL.L) on Friday agreed to acquire India-based renewable power platform Sprng Energy for $1.55 billion, boosting the energy company's low-carbon output as it shifts away from oil and gas.

Shell said it would buy 100% of Solenergi Power Private Limited, the flagship company of Sprng Energy group, from UK-based investor Actis.

Sprng Energy supplies solar and wind power to electricity distribution companies in India, seen as a major growth market in the power sector in the coming decades.

Sprng Energy's portfolio consists of 2.9 gigawatts-peak (GWp) of assets and a further 7.5 GWp of renewable energy projects in the pipeline.

The deal will triple Shell's current renewables capacity in operations.

"This deal positions Shell as one of the first movers in building a truly integrated energy transition business in India," Wael Sawan, Shell's head of integrated gas and renewables, said in a statement.

The deal is expected to close later this year.

Shell currently has 4.7 gigawatts (GW) of renewable energy generation capacity in operation, under construction or committed to sale. It has a further pipeline of 38 GW in future projects.

The London-based company aims to become a net zero greenhouse gas emissions company by 2050.

Several international energy companies have invested in India's renewables and power sector in recent years, including BP (BP.L) through Lighsource BP and TotalEnergies (TTEF.PA) through its 20% holding in Adani Green Energy.

Reporting by Ron Bousso; editing by Jason Neely

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Ron has covered since 2014 the world’s top oil and gas companies, focusing on their efforts to shift into renewables and low carbon energy and the sector's turmoil during the COVID-19 pandemic and following Russia's invasion of Ukraine. He has been named Reporter of the Year in 2014 and 2021 by Reuters. Before Reuters, Ron reported on equity markets in New York in the aftermath of the 2008 financial crisis after covering conflict and diplomacy in the Middle East for AFP out of Israel.