Shell Sells Onshore Renewables Unit to TotalEnergies

Shell is divesting its onshore European renewables unit to TotalEnergies in a deal that includes about 500 megawatts of operating or under-construction solar and wind assets. The sale, which will be completed by the end of 2026, covers assets in Italy, the Netherlands, Spain, and the UK.

TotalEnergies has also announced a separate sale of a 50 percent stake in a 1.2 gigawatt European renewables portfolio to global investment firm KKR, valuing the portfolio at 1.8 billion euros or $2.1 billion.

This move by Shell is part of its strategy under CEO Wael Sawan to focus on upstream operations and trading, rather than low-carbon investments. The company's second-quarter profit more than doubled from a year earlier to the second-highest on record, helped by higher energy prices and stronger liquefied natural gas trading.

TotalEnergies' European renewables asset portfolio amounts to almost 10 gigawatts of gross installed capacity or capacity under construction, and 27 gigawatts under development.