Shell Enters Indian Solar Market with 49% Stake in Cleantech Solar
Singapore based Solar Solutions provider and developer, Cleantech Solar has announced in a company statement that Shell Eastern Petroleum (Pte) Ltd has signed an agreement to acquire a 49% interest in the company for $100 million, with the possibility to increase its position after 2021. This is the company’s second major investment in the solar sector this year and grants it an immediate path to an already well established commercial and industrial platform in Southeast Asia and India.
“We are very impressed by Cleantech Solar’s record of developing lasting relationships with multinational and regional corporations who are eager to implement subsidy-free renewable energy into their corporate strategies,” said Marc van Gerven, Shell Vice President of solar and storage. “Asia is a significant commercial and industrial solar generation market for Shell and we are proud to work with Cleantech Solar as a leading solar company in the region.”
In the last four years, Cleantech Solar has signed over 120 contracts with local and multinational corporations in Southeast Asia, including India, representing 200 MW of projects, including a few in the pipeline. The company has generated over 100 million kWh units of electricity. After completion of the deal in January 2019, Cleantech Solar will continue to operate under its existing management and name.
Cleantech Solar’s Chairman and Founder Raju Shukla said, “I’m very excited by what this agreement with Shell means for our company’s mission. From the day Cleantech Solar was founded, we wanted it to become the most trusted provider of solar power for the leading corporations of Asia. This partnership with Shell, a global energy company, brings their resources and capabilities as they build a global renewable power business and it gives us a tremendous boost in our home region. I’m honoured that Shell values the strength, agility, and responsiveness of the teams we’ve developed in each of our markets.”
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On the same day, Shell New Energies US LLC and EDF Renewables North America announced that they have formed a 50/50 joint venture, Atlantic Shores Offshore Wind, LLC to co-develop an offshore wind project within the New Jersey Wind Energy Area (WEA). The lease area holds the potential to produce approximately 2,500 megawatts (MW) of offshore wind energy – enough to power close to one million homes.
“Shell has bold ambitions to grow our renewable power business and we see great potential in U.S. offshore wind,” said Dorine Bosman, VP Shell Wind Development. “Gaining access to this acreage in New Jersey complements our successful entry to Massachusetts and our existing renewable generation business. Building on the strength of our brand and global presence allows us to continue providing our customers with more and cleaner energy.”
However, it is interesting to put these investments from Shell in perspective. These mark a tiny share of overall capex and investments by the oil major, clearly demonstrating that its business as usual for now, with solar and wind simply making a business case for themselves too. Just the targeted share buyback plan is for $25 billion by 2020, a target Shell claims to be on course for.
