Shell (RDS.A) Boosts Solar Market Base in UK With 800MW Deal
Shell's (RDS.A) deal with Clearstone Energy of the United Kingdom will encompass projects with a combined capacity of 100MW and co-located storage potential.
Royal Dutch Shell plc (RDS.A) recently announced its first entry into solar development in the United Kingdom, establishing two collaborations that will lead to the construction of more than 800 megawatts (MW) of power.
The Anglo-Dutch supermajor inked a framework deal with developer Island Green Power for the development of photovoltaic (PV) projects with co-located battery storage. The parties will first work together on more than 700 MW of total generating capacity.
The second collaboration is with Clearstone Energy of the United Kingdom, which will encompass projects with a combined capacity of 100 MW and co-located storage potential. Both transactions are contingent on the future final investment decisions.
Shell, which is already involved in solar developments in other markets around the world, plans to utilize the solar capacity to create renewable energy in the areas where customer demand is high as part of a larger ambition to develop an integrated energy firm in the UK market.
Following the 2017 acquisition of First Utility, which was finalized in 2018, Shell already has a power provider in the UK. In 2019, the firm changed its name to Shell Energy and announced that it transitioned all of its residential clients to 100% renewable energy.
Shell is already developing solar projects in other regions as well as making significant inroads into offshore wind, such as floating turbines as part of an effort to build a sustainable energy base.
The company's UK solar venture came at a time when Prime Minister Boris Johnson announces plans to transition Britain's power generation considerably to a renewable and nuclear set-up by 2035, a job that experts say will necessitate massive new wind and solar installations as well as storage and a redesigned infrastructure.
Shell, like its European Big Oil competitors, pledged to reduce its traditional oil and gas operations in favor of cleaner energy sources with electricity as a key component of its transition plan.
Unlike its peers, this energy player primarily concentrated on long-term power purchase agreements or smaller investments in technological firms. This contrasts with multibillion-dollar investments in wind generation by BP p.l.c. BP and TotalEnergies SE’s TTE acquisition of a share in Adani Green Energy Ltd, an Indian renewables business.
Zacks Rank & Another Key Pick
Shell currently sports a Zacks Rank #1 (Strong Buy). Another top-ranked player in the energy space is Continental Resources, Inc. CLR, presently flaunting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Continental Resources’ earnings beat the Zacks Consensus Estimate in three of the previous four quarters, missing the same on one occasion.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BP p.l.c. (BP): Free Stock Analysis Report
Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report
Continental Resources, Inc. (CLR): Free Stock Analysis Report
TotalEnergies SE Sponsored ADR (TTE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research