Shell Selling Partial Interest in Two US Renewable Projects
LONDON — British oil and gas multinational Shell plc is selling a 60% interest in Brazos Wind Holdings, LLC, a 182 MW wind farm in Fluvanna, Texas, and 50% interest in Madison Fields Class B Member, LLC, a 180 MW solar development in Madison County, Ohio.
“This agreement follows our guidance at Shell’s Capital Markets Day to pursue dilutions in ownership from power interests while maintaining access to renewable electrons via select offtake agreements,” said Glenn Wright, senior vice president at Shell Energy Americas, in a written statement.
“We continue to take a disciplined approach within our current renewables portfolio, aiming to work with partners and focus on opportunities where we can integrate across the value chain through trading and optimization,” Wright said.
Through the current agreement, Shell will retain 100% of power offtake from the Brazos project through Shell Energy North America (US) L.P.
The Madison Fields solar project will retain an existing corporate power purchase agreement in place with a third party, the company said in a press release.
Shell will be the asset manager of Brazos and Madison Fields, and both projects will benefit from Inflation Reduction Act tax credits, it added.
The sale of both assets is expected to be completed by early 2024, with a December 2023 effective date.
The Brazos wind farm is currently undergoing a repower and is expected to generate a full 182 MW once completed in early 2024.
The Madison Fields solar project is expected to begin generating power by the end of this year.
Dan can be reached at [email protected] and @DanMcCue
