Fossil fuel giant Shell continues to buy into new energy revolution

Fossil fuel giant Shell continues to buy into new energy revolution

Fossil fuel giant Shell continues to buy into new energy revolution 698 510 Energy Storage Journal

March 7, 2019: Oil and gas giant Shell has announced two deals in as many weeks that positions it at the forefront of new energy transition, one with virtual power plant firm Limejump and the other with residential storage company Sonnen.

Both firms will become wholly owned subsidiaries of the British-Dutch company following post-regulatory approval. Details, including the financial aspects of deals, have not been disclosed.

UK firm Limejump announced its deal on February 27. Limejump’s co-founder Erik Nygard will remain as CEO of the company.

German smart storage system manufacturer Sonnen announced its deal on February 15. Christoph Ostermann, its chief executive officer and co-founder, said the deal would allow the company to drive growth to a new level and help speed up the transformation of the energy system.

The deal follows last May’s Shell-led investment round where Sonnen raised $71 million and entered into a strategic cooperation agreement with Shell’s New Energies division, which also took a 10% stake in the company.

Shell’s New Energies division, formed in 2016, is spending between $1 billion to $2 billion a year on new energy opportunities with the aim of scaling them up from 2020 onward.

Brian Davis, VP energy solutions at Shell New Energies, said the company was building a customer-focused energy system in support of Shell’s strategy to move to cleaner energy.