Shell announced that it has signed an agreement to acquire a 43.83% interest in U.S. solar company Silicon Ranch Corporation (Silicon Ranch) from funds managed and/or advised by Partners Group.
Consideration for the shares is between $193 and $217 million contingent on Silicon Ranch achieving predetermined milestones.
A separate agreement with Silicon Ranch will give Shell the possibility to increase its ownership after 2021.
Subject to regulatory approvals, the transaction is expected to close in Q1 2018.
"Partnering with Silicon Ranch Corporation progresses our New Energies strategy and provides our U.S. customers with additional solar renewable options," said Marc van Gerven, Shell Vice President of Solar. "With this entry into the fast-growing solar sector, Shell is able to leverage its expertise as one of the top three wholesale power sellers in the U.S, while expanding its global New Energies footprint."
This investment is part of Shell's New Energies power portfolio, which prioritizes low carbon generation and storage. Shell's interest in Silicon Ranch includes an existing portfolio of approximately 880 megawatts of projects in operation or contracted.
Silicon Ranch Corporation is a Nashville, Tennessee based developer, owner, and operator of solar energy plants in the United States. Silicon Ranch has a project and development funnel portfolio of approximately 1.9 gigawatt of capacity
Silicon Ranch will continue to operate under its existing management and the Silicon Ranch brand. Silicon Ranch said that it has doubled its operating portfolio for three consecutive years, with approximately 880 megawatts of PV systems that are contracted, under construction, or operating in 14 states from New York to California
"The transaction will enable Silicon Ranch to accelerate its growth strategy by developing new projects, entering new markets, and expanding product offerings across its portfolio. The strategic partnership provides Shell a platform to establish a successful global solar business by aligning with a proven team in the second largest solar market in the world," Silicon Ranch said
Partners Group is a global private markets investment manager headquartered in Baar-Zug, Switzerland.