Energy major Shell and pension fund PGGM have joined forces to explore a potential bid for sustainable energy provider Eneco.
The move comes after a December 2018 decision by Eneco and its shareholders’ committee to privatise the company.
In a statement, the Shell/PGGM consortium said it was “impressed with Eneco’s achievements in transforming the Dutch energy system through investments in sustainability and renewable energy.” These include a deal that will see Eneco purchase the electricity from the Seastar and Mermaid offshore windfarms that are being developed by SeaMade offshore Belgium. Eneco confirmed it will buy all of the power generated by the offshore windfarms, which are to be constructed off the coast at Zeebrugge starting in 2019.
PGGM and Shell said they combine “the knowledge, ambition and financial commitment” to build on Eneco’s sustainable strategy and are committed to growing their renewable energy offerings.
“With their roots in Dutch society, PGGM and Shell understand Eneco’s unique position in the energy transition,” they said. “The consortium envisages that Eneco will be a platform for growth, with potential investments in and outside the Netherlands.”
PGGM’s chief investment officer Frank Roeters van Lennep said, “The energy transition offers good opportunities for long-term investments in a more sustainable economy and we think Eneco can play a central role in realising the consortium’s shared ambitions. PGGM and Shell bring complementary experience and expertise across Eneco’s activities, which will support the delivery of affordable sustainable energy to a growing number of customers in northwest Europe.”
Shell integrated gas and new energies director Maarten Wetselaar said, “Eneco’s business neatly fits with Shell’s new energies activities and ambitions to continuously find new ways to reduce carbon emissions and provide more and cleaner energy. The consortium is committed to expand and develop business models that create both societal and commercial value.”
Shell is increasing the levels of its investment in offshore wind, solar, e-mobility, and the power sector and established its new energies business to create opportunities in the transition to a low-carbon future. It said that any potential investment should competitively fit in the company’s strategy and financial framework and stated capital investment guidance range of US$25-30Bn per annum.
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