Oil Giant Shell Marks Its First African Power Deal, With Acquisition Of Nigerian Solar Energy Provider

Oil Giant Shell Marks Its First African Power Deal, With Acquisition Of Nigerian Solar Energy Provider
  • Shell plc SHEL has made its first power sector acquisition in Africa by purchasing a renewable energy provider, Daystar Power.
  • Daystar operates in Nigeria, Ghana, and three other countries across west Africa. 
  • "As we do this, we're helping to address a critical energy gap for many who currently rely on diesel generators for backup power," Thomas Brostrøm, Shell's vice president for renewable generation, said in a statement.
  • Daystar, headquartered in Lagos, provides off-grid power to commercial and industrial clients, offering solar and hybrid power solutions with battery storage.
  • Also read: Exxon, Shell Seek To Offload California Oil & Gas Joint Venture.
  • It has 300 power installations with an installed solar capacity of 32 megawatts but aims to boost its capacity to 400 MW by 2025.
  • It also plans to expand to eastern and southern Africa, a goal that Daystar chief executive Jasper Graf von Hardenberg said would be easier to reach with Shell.
  • Financial Times writes that the deal follows Shell's acquisitions of renewable power businesses in other parts of the world in the past year, including the Indian group Sprng Energy in April for $1.55 billion and U.S.-based Savion in December 2021.
  • Price Action: SHEL shares are down 1.14% at $47.52 during the premarket session on the last check Wednesday.
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