Oil and gas giant Shell Plc (LON:SHEL) has agreed to acquire Nigeria-based hybrid solar power solutions provider Daystar Power in a deal marking its first power acquisition in Africa.
The financial terms of the transaction, which hinges on regulatory clearances, were not disclosed in the statement published Wednesday.
Founded in 2017, Daystar Power is an off-grid solar installer serving commercial and industrial customers in West Africa. The Lagos-based company is present in four countries and runs over 300 power installations with an installed solar capacity of 32 MW. It targets to increase its installed capacity to 400 MW by 2025.
“We have seen booming demand for solar energy in the African markets where we operate. That has been reflected in our growth: we are on-track to increase our installed solar capacity by 135% in 2022,” said Daystar Power's co-founder and chief executive Jasper Graf von Hardenberg.
The acquisition will allow Shell to deliver carbon emission reductions and power cost savings to commercial and industrial businesses across Africa amid booming demand for solar energy in the local markets.
As for Daystar Power, the agreed deal is seen to help the company grow its operations in the region while expanding across the African continent, the statement said.
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