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Shell set to make first solar power provider acquisition in Africa

September 29, 2022

This Day:

Royal Dutch Shell is set to purchase African solar provider, Daystar Power, as it expands its global renewables footprint and seek to work towards its carbon emission reduction policy.

The company which has operated in Nigeria for over six decades supports the  ambitious goal to tackle climate change laid out in the Paris Agreement which is to limit the rise in average global temperature to 1.5°Celsius.

In October 2021, the oil giant set a target to reduce absolute emissions by 50 per cent by 2030, compared to 2016 and has come under immense pressure from investors to end its “incoherent” stance on climate action. 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 massively 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,” Shell’s Vice President for Renewable Generation, Thomas Brostrøm, said in a statement. But neither Shell nor Daystar commented on the sale price. Shell earmarked $2-3 billion in capital expenditure for renewables and energy solutions in 2022, according to Reuters.

[Emmanuel Addeh]

More: Shell Steps Up Fossil Fuels Divestment, Acquires Nigerian Firm in First African Renewables Deal

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