Shell sells Indian wind and solar business for $1.8bn - FT中文网
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Shell sells Indian wind and solar business for $1.8bn

Aditya Birla Renewables takes on Shell’s renewable assets in India as energy major continues to refocus on oil and gas
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{"text":[[{"start":7.95,"text":"Shell is selling its Indian wind and solar business for $1.8bn as it continues to retrench from renewables and refocus on its most profitable areas under chief executive Wael Sawan. "}],[{"start":20.35,"text":"The FTSE 100 company announced on Monday the sale of Sprng Energy to Aditya Birla Renewables, part of the Mumbai-headquartered Aditya Birla conglomerate spanning energy to cement. "}],[{"start":32.05,"text":"Machteld de Haan, Shell’s president of downstream, renewables and energy solutions, said the company was “high-grading” its electricity portfolio and building a more competitive business."}],[{"start":43.699999999999996,"text":"Sprng Energy owns 3.3 gigawatts-peak of operating solar and wind farms and 1.7GWp of contracted projects, making it a major player in India’s growing renewables market, although not the largest. "}],[{"start":59.05,"text":"The sale comes as Shell is also reportedly preparing to sell off offshore wind farm projects around the world. "}],[{"start":66.45,"text":"Sawan took over as chief executive in January 2023 and set about trying to boost shareholder returns and cut costs. The company’s net debt has climbed from $45.7bn at the end of last year to $52.6bn at the end of the first quarter of this year, suggesting he is willing to finance shareholder payouts through borrowing."}],[{"start":88.35,"text":"In 2024, Shell said it would cut emissions more slowly than had been planned under Sawan’s predecessor Ben van Beurden, part of a wider refocusing on fossil fuels in the sector as oil and gas prices rose and companies came under pressure to match the shareholder returns of their US peers."}],[{"start":106.44999999999999,"text":"Shell has had a large power trading business for decades and in 2019 set out plans to become one of the largest power companies in the world as it eyed the shift towards electric cars.  "}],[{"start":117.89999999999999,"text":"Those ambitions appear to have been dialled back, however, and in 2023 Shell ended a shortlived foray into Britain’s household electricity supply market."}],[{"start":127.35,"text":"At a capital markets day last year, Sawan told investors that while power was an important part of the company’s business, Shell planned to prioritise assets through which its trading teams could make money, rather than the typically lower infrastructure-type returns offered by large wind and solar farms."}],[{"start":146.75,"text":"“This means we will prioritise investments in flexible generation, such as gas-fired power plants, large-scale batteries and digital technologies,” he said. "}],[{"start":155.65,"text":"“These are critical for our trading teams to manage risk and capture value in a system which is expected to be more unpredictable as the share of supply from renewables grows.”"}],[{"start":166.45000000000002,"text":"Kumar Mangalam Birla, Aditya Birla Group’s chair, said the deal would help it “participate meaningfully in one of the largest energy transformations underway anywhere in the world”."}],[{"start":176.95000000000002,"text":"Aditya Birla Renewables said in December it had a portfolio of about 4.3 gigawatts of renewables across 10 states. It sold a minority stake that month to BlackRock’s Global Infrastructure Partners."}],[{"start":191.85000000000002,"text":"India is rapidly developing wind and solar power because of a combination of government policy, rich solar resources, and low-cost Chinese solar panels, although it is also trying to build up its own manufacturing. "}],[{"start":205.00000000000003,"text":"The deal with Shell is subject to regulatory approval and is expected to complete at the end of this year."}],[{"start":217.75000000000003,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1784011175_5416.mp3"}

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