Shell has announced it is to acquire a 44% stake in a US solar firm.
The energy giant announced it has signed an agreement with the Silicon Ranch Corporation, with consideration for the shares to be between $193 and $217 million, depending on the firm achieving its predetermined milestones.
Shell’s interest includes an existing portfolio of approximately 880MW of projects in operation or planned.
A separate agreement with the clean energy business will give Shell the possibility to increase its ownership after 2021.
Marc van Gerven, Shell Vice President of Solar, said: “Partnering with Silicon Ranch Corporation progresses our New Energies strategy and provides our US customers with additional solar renewable options.
“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.”
Subject to regulatory approvals, the transaction is expected to close early this year.