Shell Energy North America (SENA), a subsidiary of Shell plc, has signed an agreement to acquire 100% of the shares of RISEC Holdings, LLC. This entity owns a 609-megawatt (MW) combined-cycle power plant located in the state of Rhode Island, USA. This acquisition will enable Shell to reinforce its position in the Independent System Operator New England (ISO New England) power market, a deregulated market where SENA has already been a significant player.
A strategic acquisition for the energy market
The power plant, equipped with two gas turbines, has been supplying the ISO New England market for several years. Demand for electricity is expected to grow as decarbonization efforts increase, particularly in the home heating and transportation sectors. Since 2019, SENA has held an energy conversion agreement for the entirety of the plant’s energy output.
Strengthening Shell’s position in America
This acquisition is part of Shell’s strategy to secure stable production capacity while optimizing trading opportunities in the U.S. energy market. Huibert Vigeveno, Shell’s Downstream, Renewables & Energy Solutions Director, emphasized the importance of this transaction in consolidating the company’s presence in this key U.S. region.
Outlook for energy growth
With this acquisition, Shell is leveraging its in-depth knowledge of the plant’s performance to maximize synergies with its existing energy portfolio. This reinforces its position in a market where energy needs are expected to increase significantly in the coming decades due to rising decarbonization goals.
Transaction details
Additionally, this acquisition is not expected to impact Shell’s capital expenditure guidance, which remains unchanged. However, the transaction is subject to regulatory approval and is expected to close in the first quarter of 2025.
