Shell Plc exploring sale of 1GW renewable energy assets in India: Report

HSBC is reportedly managing the sale, which is estimated to have an equity value of $350 million and an enterprise value of $1.1 billion.

Shell Plc is looking at selling 1 gigawatt (GW) of operational assets of its Sprng Energy unit, the Mint reported on August 13, a move that can significantly impact India’s burgeoning renewable energy sector.

Shell’s plan is seeing interest from both global and domestic entities. Among the interested parties are ArcelorMittal, Singapore’s Sembcorp Industries Ltd, the Canada Pension Plan Investment Board (CPPIB), and JSW Neo Energy, the report cited sources as saying.

HSBC is reportedly managing the sale, which is estimated to have an equity value of $350 million and an enterprise value of $1.1 billion.

Moneycontrol couldn’t verify the report independently.

Shell acquired Sprng Energy from Actis LLP in 2022 at an enterprise value of $1.55 billion. At that time, Sprng Energy had 2.1 GW of operational renewable energy projects and an additional 7.5 GW in the pipeline. Since the acquisition, the company has expanded its operational capacity by 800 megawatts (MW).

CPPIB, Sembcorp, and ArcelorMittal previously conducted due diligence on Sprng Energy during the Shell-Actis transaction.

Shell Plc had engaged Ambit Group for a valuation exercise as part of its efforts to sell a stake in Sprng Energy's operational assets.

In response to inquiries, a Shell Group spokesperson reiterated the company's commitment to growing its renewables portfolio in India, saying at present, there was no strategic review of Sprng Energy underway.

The spokesperson highlighted Shell's focus on capital discipline and its intention to collaborate with investors interested in de-risked operational assets to accelerate the growth of its renewables portfolio.

Spokespersons for HSBC and CPPIB declined to comment on the report, while representatives from ArcelorMittal, Sembcorp, JSW Group, and Ambit Group did not respond to queries.