Shell Acquires Nigeria’s Renewable Energy Firm, Daystar Power
Shell has acquired a Nigerian renewable energy group, Daystar Power, for an undisclosed sum, according to Financial Times.
The acquisition reportedly marks Shell’s first power sector acquisition in Africa, which confirmed the oil major’s determination to build out a green energy business that will eventually reduce its dependence on fossil fuels. The acquisition follows Shell’s acquisitions of renewable power businesses in other parts of the world in the past year, including the Indian group Sprng Energy in April for $1.55 billion and US-based Savion in December 2021 The Daystar acquisition is said to be significantly smaller than either of those deals.
Shell was the first company to discover oil in Nigeria in 1956 and has pioneered the development of the sector in the decades since. Day Star is a Nigerian renewable energy provider, which operates in Nigeria, Ghana and three other countries across West Africa. It provides solar power and battery solutions to businesses and industries across the region, including Nigerian Bottling Co, makers of Coca-Cola in the country.
It has an installed generating capacity of about 32 megawatts, compared with the 2 gigawatts operated by Sprng in India. Daystar had raised $92 million in funding since its inception in 2017, including a $20 million facility from the Washington-based International Finance Corp last year. Executive Vice-President for Renewable Eeneration, Shell, Thomas Brostrøm, said the acquisition of Daystar was a fundamental step for the oil giant in growing its presence in emerging power markets and its first steps into the renewable power space in Africa. Chief Executive of Daystar, Jasper Graf von Hardenberg, said demand for his company’s services had increased and that meeting it would have required raising another round of capital.