Aug. 3 (Reuters) – Shell has agreed to sell its onshore European renewables business to TotalEnergies, continuing the energy major’s strategy of reducing investments in low-carbon businesses to focus on liquefied natural gas (LNG) and upstream oil and gas operations, Reuters reported.
The deal covers renewable energy assets in Italy, the Netherlands, Spain and the UK and is expected to be completed by the end of 2026.
The transaction includes around 0.5 gigawatts (GW) of renewable power generation capacity that is either operational or under development, along with a pipeline of future renewable energy projects.
Under Chief Executive Wael Sawan, Shell has been reshaping its portfolio by scaling back investments in renewable power and increasing its focus on businesses that generate higher returns, particularly LNG trading and upstream production.
Separately, TotalEnergies announced that it has agreed to sell a 50% stake in a 1.2 GW European renewable energy portfolio to global investment firm KKR. The transaction values the portfolio at €1.8 billion.
TotalEnergies said both transactions are aligned with its strategy of expanding renewable and gas-fired power generation in key deregulated electricity markets while monetising up to half of its renewable energy assets to recycle capital into new projects.
