Shell Agrees To Sell Partial Ownership Stake In Two U.S.-Based Renewable Energy Projects To Infrared Capital Partners; Shell Will Sell 60% Interest In Brazos Wind Holdings, A 182-Megawatt Onshore Wind Farm In Fluvanna, Texas
Portfolio Pulse from Benzinga Newsdesk
Shell plc has agreed to sell a 60% stake in Brazos Wind Holdings and a 50% stake in Madison Fields to InfraRed Capital Partners. Shell will retain power offtake from Brazos and manage both assets, which will benefit from IRA tax credits. The sale is expected to complete by early 2024.
December 11, 2023 | 6:06 pm
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NEUTRAL IMPACT
Shell plc is selling a majority stake in two renewable energy projects, retaining power offtake and management roles, and benefiting from IRA tax credits.
Shell's divestment aligns with its strategy to dilute ownership but maintain access to renewable energy. The deal is structured to retain certain benefits for Shell, such as power offtake and asset management, which could be seen as a positive move for operational efficiency and focus on core competencies. However, the impact on the stock price is likely to be neutral in the short term as the market digests the implications of the sale and the benefits from the IRA tax credits.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 80