Shell buys US clean electricity retailer

Dutch oil major Shell has purchased a US renewable energy retailer as part of its plan to reach net-zero greenhouse gas (GHG) emissions by the middle of the century.

The company's Shell New Energies subsidiary has agreed to buy renewable energy retail supplier Inspire Energy Capital, based jointly out of California and Pennsylvania. The purchase will support Shell's plans to become a "major provider" of renewable and low-carbon energy, part of a larger drive to lower the company's GHGs to net-zero by 2050.

The arrangement is subject to regulatory sign-offs and expected to close by the fourth quarter of 2021. Inspire will continue to operate under its current name as a subsidiary of the oil company.

"This deal instantly expands our business-to-consumer power offerings in key regions in the US, and we are well-positioned to build on Inspire's advanced digital capabilities to allow more households to benefit from renewable and low-carbon energy," Shell executive vice presidents of renewables and energy solutions Elisabeth Brinton said.

Beyond its 2050 goal, Shell has adopted interim targets to reduce its carbon intensity, or GHG emissions per unit of energy sold, by 20pc by 2030 and 45pc by 2035. To that end, Shell has been working to increase the share of "lower-carbon products," a list that includes natural gas, biofuels and hydrogen, in its overall sales.

Shell reported its net carbon footprint in 2020 at 75g of CO2e per megajoule, down from 78gCO2e/MJ in 2019. The company is trying to reduce its carbon intensity by 2pc-3pc from a 2016 baseline of 79gCO2e/MJ by the end of the year.

Buying Inspire builds on Shell's existing interest in US renewables. The company is partnering with developer EDF Renewables on the 1,510MW Atlantic Shores offshore wind farm, which New Jersey last month approved as part of the state's drive to build out the ocean-based sector.

By Patrick Zemanek