23rd Oct 2024 21:46
(Alliance News) - Shell PLC on Wednesday said it was buying a combined-cycle power plant in a priority US trading market.
In a statement, the London-based oil major announced an agreement to buy Risec Holdings LLC, which owns a 609-megawatt two-unit combined-cycle gas turbine power plant in Rhode Island, US.
The acquisition secures long-term supply and capacity offtake for Shell in the deregulated Independent System Operator New England power market, where SENA has held a contract with Risec since 2019, Shell said.
"Shell has had a successful integrated gas and power business in the growing ISO New England market for over 20 years, and this acquisition secures valuable trading opportunities by guaranteeing SENA’s position in the market," said Huibert Vigeveno, Shell Downstream, Renewables & Energy Solutions director.
"Our strong understanding of this plant’s performance positions Shell to capitalise on its value within our existing trading portfolio."
Risec’s combined-cycle gas turbine power plant supplies power to the ISO New England power market, where demand is expected to increase in coming decades due to growing decarbonisation efforts in sectors such as home heating and transportation.
The acquisition will be absorbed within Shell’s cash capital expenditure guidance, which remains unchanged. The deal is expected to close in the first quarter of 2025.
Shares in Shell closed down 1.0% at 2,539.50 pence each in London on Wednesday.
By Jeremy Cutler, Alliance News reporter
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