Shell agrees to sell partial ownership stake in two U.S.-based renewable energy projects to InfraRed Capital Partners

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Dec 11, 2023, 13:00 ET

HOUSTON, Dec. 11, 2023 /PRNewswire/ -- Shell Wind Energy Inc. and Savion Equity, LLC, subsidiaries of Shell plc (Shell), have agreed to sell partial ownership stake in two U.S.-based renewable energy projects to InfraRed Capital Partners (InfraRed).

Shell will sell 60% interest in Brazos Wind Holdings, LLC (Brazos), a 182-megawatt (MW) onshore wind farm in Fluvanna, Texas, and 50% interest in Madison Fields Class B Member, LLC (Madison Fields), a 180-MW solar development in Madison County, Ohio.

"This agreement follows our guidance at Shell's Capital Markets Day to pursue dilutions in ownership from power interests while maintaining access to renewable electrons via select offtake agreements," said Glenn Wright, Senior Vice President Shell Energy Americas. "We continue to take a disciplined approach within our current renewables portfolio, aiming to work with partners and focus on opportunities where we can integrate across the value chain through trading and optimization."

Through the current agreement, Shell will retain 100% of power offtake from the Brazos project through Shell Energy North America (US) L.P. The Madison Fields solar project will retain an existing corporate power purchase agreement in place with a third party. Shell will be the asset manager of Brazos and Madison Fields, and both projects will benefit from Inflation Reduction Act (IRA) tax credits.

The sale of both assets is expected to be completed by early 2024, with a December 2023 effective date.

Notes to editors

Savion, founded in 2019, is a wholly owned subsidiary of Shell and operates independently on a stand-alone basis. Headquartered in Kansas City, Missouri, Savion develops large-scale solar and energy storage projects across 33 states.
The Brazos wind farm is located in Fluvanna, Texas. Brazos is currently undergoing a repower and is expected to generate 182 MW once completed in early 2024.
The Madison Fields solar project is located in Madison County, Ohio. Madison Fields is under development, and is expected to generate 180 MW once completed by year-end 2023.
Shell USA, Inc is an affiliate of Shell plc, a global group of energy and petrochemical companies with operations in more than 70 countries. The U.S. is a key market for Shell, where it operates in 50 states across sectors such as oil, gas, refined products, petrochemicals, wind, solar and hydrogen. Shell employs more than 15,000 people in the U.S. working to provide a secure supply of energy today, while tackling the energy challenges of the future.

Cautionary note

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Forward-Looking Statements

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Shell's net carbon intensity

Also, in this announcement we may refer to Shell's "Net Carbon Intensity", which includes Shell's carbon emissions from the production of our energy products, our suppliers' carbon emissions in supplying energy for that production and our customers' carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell's "Net Carbon Intensity" is for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell's Net-Zero Emissions Target

Shell's operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and Net Carbon Intensity (NCI) targets over the next ten years. However, Shell's operating plans cannot reflect our 2050 net-zero emissions target and 2035 NCI target, as these targets are currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell's operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.

Forward Looking Non-GAAP measures

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SOURCE Shell USA, Inc.