British oil, gas and energy company Shell is preparing to sell its offshore wind farms in a transaction that could exceed $1bn (£744.78m) as its focus shifts from renewables, according to a Bloomberg report.
The move marks Shell’s latest step to scale back its renewable energy operations in favour of its more profitable fossil fuel activities.
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The company has appointed advisers from Rothschild & Co and PJT Partners to oversee the potential sale.
This formal sale process is expected to begin as early as the end of this year, with a transaction likely to be completed in 2027, the report said.
Representatives for Shell, Rothschild and PJT declined to comment when contacted.
Shell CEO Wael Sawan, who assumed the role more than three years ago, has pursued a strategy of reducing low-carbon investments and divesting assets with lower returns.
The intended sale of the offshore wind farms follows similar moves including the divestment of Shell’s European onshore renewables division and its India-based Sprng Energy business, which it acquired for $1.55bn in 2022.
In addition, the company withdrew from planned offshore wind projects in Scotland last year.
The restructuring of Shell’s portfolio continues a departure from previous ambitions to become a significant producer of renewable electricity.
One Shell executive had previously suggested transforming the company into the world’s largest electricity supplier.
However, since Sawan became CEO in early 2023, the company has shifted emphasis to increasing returns for shareholders, narrowing its focus towards liquefied natural gas trading and upstream operations.
The current offshore wind farm sale represents a further move away from Shell’s earlier expansion into renewable energy.
In April, Evolve Energy Supply entered into a long-term deal with Shell Energy Europe to buy electricity generated by the 573MW Race Bank offshore wind farm in the UK North Sea.
