Based in Kansas City, Missouri, Savion currently employs 126 staff and has a pipeline of more than 18 gigawatts of solar and energy storage projects with over 100 projects under development in 26 states. (Source: Shutterstock.com)
On the heels of closing the $9.5 billion sale of its Permian Basin upstream business, Royal Dutch Shell Plc has announced the acquisition of a U.S.-based solar and energy storage developer described by Shell as a significant expansion to its global solar portfolio.
According to a company release on Dec. 14, Shell New Energies US LLC, the Houston-based subsidiary of the Anglo-Dutch multinational energy giant, signed an agreement to buy 100% of Savion LLC from Macquarie's Green Investment Group.
Based in Kansas City, Missouri, Savion specializes in developing solar power and energy storage projects for a variety of customers, including utilities and major commercial and industrial organizations in the U.S.
The acquisition is expected to expand Shell’s existing solar and energy storage portfolio, where Shell holds interest in developers such as Silicon Ranch Corp. in the U.S., as well as propel forward its net-zero ambitions, according to Wael Sawan, integrated gas and renewables and energy solutions director at Shell.
“As one of the fastest-growing, lowest-cost renewable energy sources, solar power is a critical element of our renewables portfolio as we accelerate our drive to net zero,” Sawan commented in the company release.
Savion currently employs 126 staff and has a pipeline of more than 18 gigawatts of solar and energy storage projects with over 100 projects under development in 26 states.
“Savion’s significant asset pipeline, highly experienced team, and proven success as a renewable energy project developer make it a compelling fit for Shell’s growing integrated power business,” Sawan added.
In total, Shell aims to sell more than 560 terawatt-hours of power globally per year by 2030—twice as much electricity as the company sells today, according to the release. The target is part the “Powering Progress” strategy Shell unveiled in February, which included details of how it will achieve its target to be a net-zero emissions energy business by 2050 and ultimately led to the company’s decision to exit the Permian Basin in an all-cash transaction with ConocoPhillips Co. that closed in Dec. 1.
The Savion acquisition is expected to close by year-end.
Though Shell did not disclose the value of the transaction, the global supermajor said the Savion acquisition falls within its 2021 “renewables and energy solutions” cash capex budget of $2 billion to $3 billion disclosed earlier in the year.
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