Royal Dutch Shell Plc (AMS:RDSA) has agreed to purchase a 49% stake in Australia’s WestWind Energy Development Pty Ltd, thus getting access to the target’s 3-GW wind project pipeline in its home market.
The move is aligned with the oil and gas major’s plan to build a low-carbon integrated power business in Australia, it said on Tuesday without providing financial details on the planned acquisition.
Victoria-based WestWind is engaged in the development, construction, operation and management of wind farms and other renewable energy projects in Australia. To date, it has permitted 2 GW of wind projects and will progress an additional 3 GW of renewable energy schemes in the next few years.
Under the agreement, the 49% interest will be bought by Shell Energy Operations Pty Ltd in what will be the group’s first investment in the Aussie wind power market. The deal will see Shell and WestWind collaborate in the development of the Aussie firm’s pipeline of projects in the states of Victoria, New South Wales and Queensland.
“This strategic partnership with WestWind complements Shell’s investments over recent years across large scale solar, carbon trading and power retailing, generation and trading,” pointed out Tony Nunan, Shell Australia Country Chair.
The transaction is pending regulatory clearance and is expected to be finalised in 2022.
In Australia, Shell has invested in renewables developer ESCO Pacific, the local arm of German battery maker Sonnen, environmental services company Select Carbon and energy retailer Powershop Australia.
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