Shell PLC SHEL is reportedly initiating the sale of a significant portion of its U.S. solar business, Savion. The decision is in line with the company’s broader strategy under CEO Wael Sawan.
What Happened: Shell’s U.S. solar business, Savion, is selling off approximately a quarter of its assets, Reuters reported on Thursday citing a marketing document and industry sources. The sale is being managed by investment bank Jefferies Financial Group and includes up to 10.6 gigawatts (GW) of solar generation and storage assets currently in development.
The assets up for sale are located in various regions across the United States, with the total value yet to be determined. This move is part of Shell’s ongoing shift away from owning renewable energy projects, a strategy that Sawan has been implementing since taking office in January 2023.
Shell’s focus is now on higher-margin projects, maintaining oil output, and increasing natural gas production. The company’s decision to sell off its U.S. solar assets follows other recent divestments, including its power retail businesses in Britain and Germany, several floating offshore wind projects, and a reduction in its hydrogen business.
Shell and Savion did not immediately respond to Benzinga's request for comment.
Why It Matters: This latest development is part of Shell’s broader strategic shift under CEO Sawan. In January 2023, Sawan announced the company’s intention to focus on accessing low-carbon power that it could sell and trade, rather than owning the generation assets, where returns are usually lower.
Shell’s decision to sell off its U.S. solar assets follows a series of strategic moves. In February, the company ceased the operation of hydrogen light-duty passenger fueling stations in California, dealing a significant blow to the state’s hydrogen mobility aspirations. This move was attributed to supply chain issues and other external market factors.
Earlier in December, Shell, along with its operating co-owner, Equinor ASA EQNR, reached a final investment decision for Sparta, a deep water development in the U.S. Gulf of Mexico. This project was expected to boost Shell’s oil output in the region.
However, in January 2024, Shell announced a complete halt to its shipments traversing the Red Sea due to mounting security concerns, reflecting the growing regional tensions and their influence on international shipping.
These developments, along with the recent decision to sell off its U.S. solar assets, underscore Shell’s ongoing strategic realignment under Sawan’s leadership.
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