Shell sells solar and wind operations to France’s TotalEnergies Proactive uses images sourced from Shutterstock
Shell PLC (LSE:SHEL, NYSE:SHEL) has struck a deal to sell its European onshore renewables business to France’s TotalEnergies.
The FTSE 100 oil giant said it was continuing to reshape its power portfolio and recycle capital into businesses where it believes it has a competitive advantage.
The deal includes about 500 megawatts of solar and wind capacity in operation or under construction across the UK, Italy, Netherlands and Spain, together with a 3.5 gigawatt pipeline of renewable and battery storage projects.
Machteld de Haan, Shell’s downstream, renewables and energy solutions chief, said the transaction reflected the group’s strategy of “actively managing and high-grading its power portfolio”.
“We are recycling capital and prioritising areas where we have differentiated capabilities and can create the most value over time, including through asset-backed power trading and customer-focused energy solutions,” she said.
For TotalEnergies, the acquisition strengthens its renewable power business in four key European markets and expands its portfolio to almost 10 GW of installed or under-construction renewable capacity, with a further 27 GW under development.
Alongside the acquisition, TotalEnergies has agreed to sell a 50% stake in a separate 1.2 GW portfolio of operational solar and wind assets in Germany, Spain, France and Poland to investment firm KKR. The portfolio has an enterprise value of €1.8 billion. TotalEnergies will retain the remaining 50% stake and continue to operate the assets after the transaction completes.
Stéphane Michel, president of Gas, Renewables & Power at TotalEnergies, said the two deals would “optimize our capital allocation in renewables while continuing to deploy our Integrated Power strategy”.
Both transactions are expected to complete by the end of 2026, subject to regulatory approval.