Shell disposes of assets from its solar energy unit in the United States

Shell U.S. solar energy company Savion, owned by Shell, has put about a quarter of its assets up for sale, according to a marketing document and industry sources, as the oil major extends its withdrawal from renewable energy projects under the command of CEO Wael Sawan.

Investment bank Jefferies (JEF.N), is selling up to 10.6 gigawatts (GW) of solar generation and storage assets currently under development, or portions of those projects, according to the document sent to potential investors and seen by Reuters.

The total value of the assets, located in the northeast, southeast and western United States, was unclear. Project valuations often depend on energy prices where they are located.

Spokespeople for Shell and Jefferies declined to comment.

Savion is developing 39.1 GW of solar and storage projects and has completed sites with capacity exceeding 2.3 GW, according to its website.

Shell acquired Savion for an undisclosed amount in December 2021 as part of former CEO Ben van Beurden’s effort to grow in the low-carbon energy market and reduce its carbon footprint.

More than two years later, the sale process marks the latest step in Shell’s turnaround under Sawan, who has pledged to focus on the most profitable businesses since taking office in January 2023.

In June, Sawan said Shell wanted to focus on accessing low-carbon energy, which it could sell and trade, rather than owning generation assets, where returns are generally lower.

Shell now intends to focus on higher margin projects, stable oil production and increasing natural gas production.

Renewable energy valuations have declined, but these assets will continue to be key to the energy transition and will draw attention as interest rates begin to decline, KPMG said in a report earlier this month.

Shell recently sold its energy retail businesses in Britain and Germany, abandoned a number of floating offshore wind projects and scaled back its hydrogen business. It is also trying to exit some refining operations and its onshore oil business in Nigeria.

Shell has also begun making staff reductions across the company, including in its low-carbon solutions division, in an effort to save up to $3 billion.