Investing.com - Shell Plc (NYSE:SHEL) is preparing to launch a sale of its offshore wind farms as the oil major continues to exit renewable energy investments to focus on its fossil fuel business, Bloomberg reported Friday.
The company has tapped advisers from Rothschild & Co. and PJT Partners Inc. to lead the sale, which could fetch over $1 billion, people familiar with the matter told Bloomberg. The process could kick off as soon as the end of this year, with a sale likely to take place in 2027, the people said.
Chief Executive Officer Wael Sawan has sought to cut costs and offload low-returning assets since taking over more than three years ago. The plan to sell the offshore farms marks a further departure from the British energy giant’s past strategy to diversify into green electricity, with a strong emphasis on wind energy.
The move follows the ongoing divestments of Shell’s European onshore renewables arm, as well as Indian renewable power company Sprng Energy, which it bought in 2022 for $1.55 billion. The company also walked away from plans to develop offshore wind farms in Scotland last year.
Shell once had grand ambitions to be a major player in renewable power, with one executive even floating a goal to turn the company into the world’s biggest electricity producer. Those plans were shelved after Sawan took the helm in early 2023 and vowed to focus more squarely on delivering returns for shareholders.
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