Adedapo Adesanya
By Adedapo Adesanya
Oil giant, Royal Dutch Shell, has purchased Nigerian solar energy provider, Daystar Power, for an undisclosed amount as it expands its global renewables portfolio.
Shell is one of the most influential oil producers in Africa, but the Daystar purchase is its first power acquisition on the continent, underscoring its mandate to cut its greenhouse gas emissions in half by 2030.
“As we do this, we’re helping to address a critical energy gap for many who currently rely on diesel generators for backup power,” Mr Thomas Brostrøm, Shell’s vice president for renewable generation, said in a statement.
This foray marks Shell’s commitment to alternative energy as the company earmarked $2-3 billion in capital expenditure for renewables and energy solutions in 2022.
Daystar Power, headquartered in Lagos, provides off-grid power to commercial and industrial clients in Nigeria, Ghana, Togo and Senegal, offering solar and hybrid power solutions with battery storage.
It has 300 power installations with an installed solar capacity of 32 megawatts but aims to boost its capacity to 400 MW by 2025.
It also plans to expand to eastern and southern Africa, a goal that Daystar chief executive Mr Jasper Graf von Hardenberg said would be easier to reach with Shell.
“For the next stage, becoming a pan-Africa power provider requires an investor with the same vision. Someone really with sufficient firepower to finance this growth,” he stated.
Pending regulatory approvals, Shell will fully own Daystar Power, but Mr von Hardenberg and the management team will continue to run the company.
Shell’s renewables and energy solutions division accounted for 6 per cent of company earnings in the second quarter, but new chief executive Mr Wael Sawan is accelerating the drive for cleaner power to meet the current wave.
It has shifted hundreds of experienced oil and gas staff into renewables and in April purchased India-based renewable power platform Sprng Energy group for $1.55 billion.
