BAKU, Azerbaijan, October 23. Shell Energy North America (US), a subsidiary of Shell plc, has signed an agreement to acquire a 100% equity stake in RISEC Holdings, LLC, which owns a 609-megawatt two-unit combined-cycle gas turbine power plant located in Rhode Island, Trend reports.
This strategic move aims to bolster Shell's presence in the highly competitive Independent System Operator New England (ISO New England) power market.
The acquisition ensures a long-term supply and capacity offtake for Shell, which has been engaged with RISEC under an energy conversion agreement for the full output of the plant since 2019. This deal aligns with Shell's commitment to expanding its integrated gas and power business, particularly in markets poised for growth.
“Shell has had a successful integrated gas and power business in the growing ISO New England market for over 20 years, and this acquisition secures valuable trading opportunities by guaranteeing SENA’s position in the market,” said Huibert Vigeveno, Shell's Downstream, Renewables & Energy Solutions Director. “Our strong understanding of this plant’s performance positions Shell to capitalise on its value within our existing trading portfolio.”
As demand for electricity in the ISO New England region is anticipated to rise in the coming decades—driven by decarbonization efforts in home heating and transportation—the RISEC plant will play a crucial role in meeting this increasing demand.
The transaction will fall within Shell’s existing cash capital expenditure guidance, which remains unchanged. The acquisition is subject to regulatory approvals and is expected to be finalized in the first quarter of 2025.