Shell announced today it has signed an agreement to acquire a 43.83% interest in U.S. solar company Silicon Ranch Corporation from funds managed and/or advised by Partners Group. Consideration for the shares is between $193 and $217 million contingent on Silicon Ranch achieving predetermined milestones.
A separate agreement with Silicon Ranch will give Shell the possibility to increase its ownership after 2021. Subject to regulatory approvals, the transaction is expected to close in Q1 2018. Shell was represented by Eversheds Sutherland (US) LLP.
“Partnering with Silicon Ranch Corporation progresses our New Energies strategy and provides our U.S. customers with additional solar renewable options,” said Marc van Gerven, Shell Vice President of Solar. “With this entry into the fast-growing solar sector, Shell is able to leverage its expertise as one of the top three wholesale power sellers in the U.S, while expanding its global New Energies footprint.”
This investment is part of Shell’s New Energies power portfolio, which prioritizes low carbon generation and storage. Shell’s interest in Silicon Ranch includes an existing portfolio of approximately 880 MW of projects in operation or contracted.
Silicon Ranch has developed solar projects across Georgia, Colorado, Mississippi, Arkansas and Tennessee. The company sees the southeastern U.S. region as a rapidly growing market to which it has played a leading role in developing.
News item from Shell