HOUSTON: Shell Energy North America (US), a subsidiary of Shell plc, has entered into an agreement to acquire a 100% equity stake in RISEC Holdings, LLC, which operates a 609-megawatt two-unit combined-cycle gas turbine power plant located in Rhode Island. The acquisition is a strategic effort to enhance Shell’s footprint in the competitive Independent System Operator New England (ISO New England) power market.

According to Trend News Agency, the acquisition ensures a long-term supply and capacity offtake for Shell, which has been engaged with RISEC under an energy conversion agreement since 2019, securing the plant’s full output. This move aligns with Shell’s broader strategy to expand its integrated gas and power business in markets where growth potential is significant.

Huibert Vigeveno, Shell’s Downstream, Renewables, and Energy Solutions Director, highlighted the benefits of the acquisition, stating, “Shell has had a successful integrated gas and power business in the growing ISO New England market for
over 20 years, and this acquisition secures valuable trading opportunities by guaranteeing SENA’s position in the market.” He further noted that Shell’s understanding of the plant’s performance would allow the company to capitalize on its value within their existing trading portfolio.

With electricity demand in the ISO New England region projected to rise due to decarbonization efforts in home heating and transportation, the RISEC plant is expected to play a vital role in meeting this demand. The transaction will adhere to Shell’s current cash capital expenditure guidance, which remains unchanged. The acquisition is pending regulatory approvals and is anticipated to close in the first quarter of 2025.