Shell completes acquisition of combined-cycle power plant in priority U.S. trading market

This acquisition maintains SENA’s position in the deregulated Independent System Operator New England (ISO New England) power market, securing long-term supply and capacity offtake for Shell. In the coming decades, power demand is expected to increase in the ISO New England market due to growing decarbonization efforts in sectors such as home heating and transportation.

The acquisition has been absorbed within Shell’s cash capital expenditure guidance, which remains unchanged.

• This acquisition allows Shell to continue an energy supply agreement that has been in place since 2019 and secure long-term energy offtake from the plant, maintaining Shell’s position in the ISO New England power market. The acquisition preserves SENA’s current operations and mitigates market risk by ensuring a reliable and stable power generation source.
• RISEC’s two-unit combined-cycle gas turbine power plant has a maximum capacity of 609 MW and an average operating capacity of 594 MW. Serving the ISO New England market, the plant is located outside Providence, Rhode Island, and has been in operation since its completion in 2002.
• Combined-cycle gas turbine power plants generate electricity via gas turbines, and capture waste heat to produce steam, which drives steam turbines for additional power: a process which enhances efficiency and reduces emissions compared to single-cycle power plants. Such plants provide reliable, flexible power, which balances the intermittency of renewable energy sources like wind and solar.
• The acquisition is projected to generate an internal rate of return well in excess of the hurdle rate set for Shell’s Power business.
• Prior to the transaction, the parent company of RISEC was 51% owned by funds managed by global investment firm Carlyle. Prior to the transaction, the remaining 49% owner of RISEC was EGCO RISEC II, LLC, a subsidiary of Electricity Generating Public Company Limited (EGCO), a Thai public limited company.
• SENA is a full-service energy company providing energy solutions across all aspects of the market. SENA has been active in North American wholesale energy markets for over 25 years and is a market leader in wholesale and retail power, natural gas, and environmental products.

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Shell’s Net Carbon Intensity

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Shell’s net-zero emissions target

Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and NCI targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target, as this target is currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.

Forward-looking non-GAAP measures

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