Shell will add to its expanding renewables base with the acquisition of 49% of Cleantech Solar, a PV developer that the oil giant says offers it a pathway into the commercial & industrial sector in Asia.
Singapore-based Cleantech Solar specialises in developing projects that supply power for large corporates in the region, counting the likes of Apollo Tyres, Coca Cola and Yamazaki Mazak among its customer base, with a portfolio currently around 200MW.
Shell said the deal offers it “an immediate path to an established commercial and industrial platform in Southeast Asia and India”.
The investment, for an undisclosed amount, gives Shell the option to increase its stake after 2021.
Asia is expected to see the next big wave of corporate renewable energy sourcing, which is already established in the US and gaining ground in Europe, either through PPAs or the ‘solar-as-service’ deployment model favoured by Cleantech Solar.
Shell earlier this year took a 44% stake in Silicon Ranch, a US developer that strikes deals with corporates there.
The Cleantech Solar deal is the latest by Shell’s increasingly active New Energies division.
Earlier this week Shell planted its flag in the US offshore wind market when its joint-venture with EDPR was successful in an auction held for development off Massachusetts, adding to its European interests in that sector.