- Shell has agreed to sell its onshore European renewables business to TotalEnergies as it sharpens its focus on upstream oil, gas and energy trading.
- The deal includes 500 MW of operating and under-construction renewable assets and a 3.5 GW development pipeline across four European countries.
Shell has agreed to sell its onshore European renewables business to TotalEnergies as the company continues to refocus its portfolio on upstream oil and gas operations and energy trading.
The transaction covers renewable energy assets in Italy, the Netherlands, Spain and the United Kingdom. Neither company disclosed the financial value of the deal.
Since becoming Chief Executive Officer three years ago, Wael Sawan has shifted Shell’s strategy towards higher-return oil and gas investments while reducing the company’s exposure to lower-return renewable energy projects.
The announcement follows Shell’s strong second-quarter financial performance. The company recently reported that its quarterly profit more than doubled from a year earlier, driven by stronger energy prices and robust liquefied natural gas trading.
Shell’s Renewables and Energy Solutions business also returned to profitability, posting adjusted earnings of US$79 million compared with a US$9 million loss during the same period last year.
The company has said it intends to focus its power business on supplying large industrial customers with integrated energy solutions that combine renewable electricity with flexible hydrocarbon-based generation.
The agreement includes approximately 500 MW of solar and wind assets that are either operational or under construction, with most located in Italy and the Netherlands.
The transaction also includes a 3.5 GW pipeline of solar, wind and battery energy storage projects under development across Italy, Spain and the United Kingdom.
Shell operated approximately 4.5 GW of renewable power generation capacity worldwide at the end of the second quarter.
The companies expect to complete the transaction before the end of 2026.
Separately, TotalEnergies announced the sale of a 50 per cent stake in a 1.2 GW European renewable energy portfolio to global investment firm KKR. The transaction values the portfolio at approximately €1.8 billion (US$2.08 billion).
TotalEnergies said both transactions support its strategy of expanding renewable and gas-fired electricity generation in key deregulated markets while monetising part of its renewable energy portfolio.
Following the acquisition, TotalEnergies’ European renewable energy portfolio will comprise nearly 10 GW of installed or under-construction capacity and 27 GW of projects under development.