HOUSTON — Shell Energy North America, L.P. (SENA), a subsidiary of Shell, has signed an agreement to acquire a 100% equity stake in RISEC Holdings, LLC (RISEC), which owns a 609-megawatt (MW) two-unit combined-cycle gas turbine power plant in Rhode Island.
This acquisition secures long-term supply and capacity offtake for Shell in the deregulated Independent System Operator New England (ISO New England) power market, where SENA has held a contract with RISEC under an energy conversion agreement for 100% of the plant’s energy offtake since 2019.
“Shell has had a successful integrated gas and power business in the growing ISO New England market for over 20 years, and this acquisition secures valuable trading opportunities by guaranteeing SENA’s position in the market,” said Huibert Vigeveno, Shell Downstream, Renewables & Energy Solutions Director. “Our strong understanding of this plant’s performance positions Shell to capitalise on its value within our existing trading portfolio.”
RISEC’s combined-cycle gas turbine power plant supplies power to the ISO New England power market, where demand is expected to increase in coming decades due to growing decarbonisation efforts in sectors such as home heating and transportation.
The acquisition will be absorbed within Shell’s cash capital expenditure guidance, which remains unchanged.
The transaction is subject to regulatory approvals and is expected to close in Q1 2025.
Source: Shell