Originally published on PlanetSave.
Oil giant Shell has stepped up its investment in renewable energy, announcing this week that it has entered into an agreement to acquire a 43.83% stake in leading US solar developer, owner, and operator Silicon Ranch Corporation, a deal set to be worth up to $217 million.
The two companies announced the move this week which will see Shell acquire a 43.83% stake in Silicon Ranch in a move which will be worth between $193 and $217 million, depending on Silicon Ranch achieving predetermined milestones. A parallel agreement between the two companies opens the door for Shell to increase its ownership after 2021. The current deal is expected to close this quarter, subject to regulatory approvals.
“Partnering with Silicon Ranch Corporation progresses our New Energies strategy and provides our US customers with additional solar renewable options,” said Marc van Gerven, Shell Vice President of Solar. “With this entry into the fast-growing solar sector, Shell is able to leverage its expertise as one of the top three wholesale power sellers in the US, while expanding its global New Energies footprint.”
Silicon Ranch has an existing solar portfolio of approximately 880 MW (megawatts), and doubled its operating portfolio for three consecutive years. The company also boasts close to 1 GW (gigawatt) worth of solar in its development pipeline. Shell’s investment in the company will help Silicon Ranch accelerate its growth strategy and allow it to develop new projects, expand into new markets, and expand its current offerings.
“Our goal at Silicon Ranch has always been to ensure that Americans have access to a reliable, affordable, and clean energy supply, and we are honored to welcome Shell as our newest business partner,” said Matt Kisber, Silicon Ranch Co-Founder and CEO. “By pairing our solar expertise and trusted brand with the scale, resources, and brand equity of Shell, we are well-equipped to collaborate with our utility partners to provide comprehensive, win-win energy solutions for them and their customers. As we welcome Shell to our team, Silicon Ranch also wants to thank Partners Group for the financial and commercial support that enabled us to surpass our ambitious growth targets over the last two years.”
“Shell shares our steadfast commitment to long-term partnership, and together we will unlock tremendous value in the US solar market,” added Reagan Farr, Silicon Ranch Co-Founder and CFO. “This significant and strategic investment by Shell is in the best interest not only of our company and our employees, but also of our customers and the communities we serve, because it will allow us to capture synergies with Shell’s businesses and benefit from its long heritage in providing energy services around the world.”
Reprinted with permission.