Shell to Acquire Sprng Energy for about $1.55 Bn to Expand Renewable Energy Footprints in India

Energy major Shell plc via its wholly-owned subsidiary, Shell Overseas Investment B.V., has signed an agreement with Actis Solenergi Ltd (Actis) to acquire 100 per cent stake of Solenergi Power Pvt Ltd (SPPL) for about USD 1.55 billion and with it, the Sprng Energy group of companies.

SPPL, incorporated in Mauritius, is the direct shareholder of Sprng Energy group of companies in India.

The deal will triple Shell’s present renewable capacity in operation and help deliver its powering progress strategy. An important part of powering progress is to develop a best-in-class integrated power business, which will help Shell to reach its target of becoming a profitable net-zero emissions energy business by 2050.

Sprng Energy supplies solar and wind power to electricity distribution companies (Discoms) in India. Its portfolio consists of 2.9 GWp of assets, including 2.1 GWp operating and 0.8 GWp contracted, with a further 7.5 GWp of renewable energy projects in the pipeline.

Commenting on the acquisition, 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, a 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,” Sawan added.

Meanwhile, the transaction is subject to regulatory clearance and is expected to close later in 2022.

However, Sprng Energy will retain its existing brand and operate as a wholly-owned subsidiary of Shell within Shell’s Renewables and Energy Solutions Integrated Power business.

In India, Shell’s existing gas business (Shell Energy) serves customers through a fully-owned and integrated value chain – competitive supply from a global LNG portfolio, re-gasification at the Hazira facility, and downstream customer sales. Shell has invested in companies like Husk Power Systems and Cleantech Solar Pte Ltd.

In February 2021, Shell announced its Powering Progress strategy, including details of how it expects to achieve its target to be a net-zero emissions energy business by 2050.