Royal Dutch Shell is expected to close a deal that would see it take control of a French renewable energy company, EOLFI, as it looks to diversify its energy portfolio in the face of mounting pressure from investors and regulators alike.
According to Reuters, “EOFLI has largely focused on solar and wind projects, including offshore wind farms. Offshore wind is one of the largest growing renewables markets, with floating structures the technology’s next frontier because they utilize waters that are too deep for traditional turbines fixed to the seabed.”
Shell generates the majority of its revenue from oil and gas and has stated its intentions to become the world’s largest electricity supplier, adding that as much as $2 to $3 billion - 10% of its overall spend - is expected to be invested into its power division by 2025.
“We believe the union of EOLFI’s expertise and portfolio with Shell’s resources and ability to scale up will help make electricity a significant business for Shell,” Offshore WInd Shell vice president, Dorine Bosman said in a statement.
Bosman, nor Shell has revealed the financial details surrounding the deal, which is expected to be finalised in December.
Reuters is also reporting that “EOLFI is part of a group developing a pilot project off the coast of Brittany, France, as it ramps up activity in a market the International Energy Agency says could attract a cumulative $1 trillion investment by 2040.”
As it stands, the UK is the world’s largest producer of offshore energy, however, it’s being reported that investments in Asia and the USA are increasing exponentially. We reported just a few weeks ago that the UK was nearing completion of the world’s largest wind farm which is larger than the Maldives, will be home to 174 and when up and running will produce enough electricity to power 2 million homes.
According to the International Energy Agency, electricity generation via wind farms grew 12% last year, and is expected to meet more than 50% of the globe’s energy requirements by 2035. In the UK, at least, this number is set to be higher considering there are another three phases of the Hornsea project currently in the planning stages. When the second phase of construction takes place, Hornsea Two will supply up to 1.6-million homes, and the construction of the third and final phase will see more than 2-million homes powered by a single wind farm.