Shell set to acquire Pune-based renewable energy firm Sprng Energy

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The Shell logo is seen at a Shell petrol station in London. REUTERS/Toby Melville

The transaction is expected to close later in 2022

New Delhi: Global energy giant,Shell, on Friday said it is set to acquireSprng Energy, a Pune-basedrenewableenergy company, for $1.55 billion.

According to the official press release, the transaction is expected to close later in 2022.

“Shell through its subsidiary, Shell Overseas Investment, signed an agreement with Actis Solenergi to acquire 100 per cent of Solenergi Power for $1.55 billion and with it, the Sprng Energy group of companies,” it added.

Sprng Energy has been set up in India by Actis, a UK-based global investor in sustainable infrastructure. The green energy firm supplies solar and wind power to electricity distribution companies in India and its portfolio consists of 2.9 GW of assets with a further 7.5 GW of renewable energy projects in the pipeline.

“This deal positions Shell as one of the first movers in building a truly integrated energy transition business in India,” said Wael Sawan, Shell’s Integrated Gas, Renewables and Energy Solutions Director.

He added that this deal would enable Shell to become a leader across the power value chain in a rapidly growing market where electrification on a massive scale and strong demand for renewables are driving the energy transition.

“Sprng Energy generates cash, has an excellent team, strong and proven development track record and a healthy growth pipeline. Sprng Energy’s strengths can combine with Shell India’s thriving customer-facing gas and downstream businesses to create even more opportunities for growth,” said Sawan.

The release added that the solar and wind assets that Shell will acquire through the deal will triple its present renewable capacity in operation and help to develop a best-in-class integrated power business, which will help the firm to reach its target of becoming a profitable net-zero emissions energy business by 2050.

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