Shell has signed an agreement to sell its European onshore renewables portfolio to French peer TotalEnergies, the UK-based supermajor said on Monday as it prioritizes capital allocation into high-value businesses.
The portfolio included in the transaction comprises 0.5 gigawatts (GW) of combined renewable generation capacity in operation and in development, as well as a pipeline of projects for future development across Italy, the Netherlands, Spain, and the UK.
The transaction is subject to regulatory approvals and is expected to complete by the end of 2026, Shell said.
Shell has said for over a year that it would adjust its power portfolio to “ensure capital is allocated where it can deliver the strongest long?term value.” That was a pledge in the Capital Markets Day 2025, which the supermajor follows through.
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“We are recycling capital and prioritising areas where we have differentiated capabilities and can create the most value over time, including through asset-backed power trading and customer-focused energy solution,” said Machteld de Haan, President, Downstream, Renewables and Energy Solutions at Shell.
European majors BP and Shell have reversed their pledges from the early 2020s to reduce oil and gas production by the end of the decade. Last year marked the return to boosting oil and gas investment and production, and with it—increased exploration efforts in key basins and promising new frontiers.
Shell’s chief executive Wael Sawan has said that reducing global oil and gas production would be “dangerous and irresponsible”.
Moreover, Shell has realized that the energy transition faces bigger hurdles than expected and doesn’t pay off in profit margins and shareholder payouts the way oil and gas does.
At the end of last year, Shell exited two offshore wind power projects in Scotland, days after announcing it was withdrawing from the Atlantic Shores Offshore Wind project in the United States.
By Tsvetana Paraskova for Oilprice.com
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