Shell Completes Acquisition of RISEC Holdings in the U.S.

Shell Energy North America (US), L.P., a subsidiary of Shell plc, has successfully acquired RISEC Holdings, LLC. The acquisition involves a 609-megawatt, two-unit combined-cycle gas turbine power plant located in Rhode Island, USA. This strategic move underlines Shell's commitment to bolstering its position in the deregulated Independent System Operator New England (ISO New England) power market, ensuring a long-term energy supply, capacity offtake, and mitigating market risks. The power plant has been operational since 2002, and its technology enhances efficiency, integrating waste heat conversion to steam and reducing emissions. SENA reaffirms its long-standing energy supply agreement established in 2019, maintaining consistent operations. The transaction absorbs within Shell's existing capital expenditure plan, forecasting an internal rate of return surpassing the set hurdle rate for Shell's Power business. RISEC was previously co-owned by Carlyle Group and EGCO. The acquisition supports Shell’s strategy to address the increasing decarbonization-driven power demand in sectors like home heating and transportation.