Page 7 - AfrElec Week 40 2022

AfrElec INVESTMENT AfrElec

Shell makes foray into

African power

NIGERIA SHELL has made its foray into the African businesses elsewhere in the world over the past
power generation sector, announcing the pur- year, including India’s Sprng Energy in April for
chase of a Nigerian renewable energy provider $1.55bn and US-based Savion in December last
on September 28. year. The Daystar purchase appears to be much
Anglo-Dutch major is acquiring Daystar smaller in scale, however. The company has an
Power, which works in Nigeria, Ghana and three installed generation capacity of only 32 MW, ver-
other countries in West Africa, providing solar sus 2 GW run by Sprng in India.
power and battery solutions to businesses and Daystar has raised some $92mn in funding
industry. Its customers include Nigerian Bot- since its formation five years ago, including a
tling Co., which manufactures Coca-Cola in the $20mn facility that was provided by Washing-
country. ton-based International Finance Corp. (IFC)
Shell is one of the largest oil producers in last year.
Africa, but despite pledging to halve its green- Though its first acquisition in renewables in
house gas (GHG) emissions by the end of the Africa, Shell has a long history in Nigeria, hav-
decade, it is yet to invest in any renewables, or ing first discovered oil in the country in 1956.
any other power generation, on the continent. But in recent years it has been beset by environ-
“As we do this, we’re helping to address a crit- mental issues and oil theft at its oil projects in
ical energy gap for many who currently rely on the country.
diesel generators for backup power,” Shell’s vice Last year, Shell announced it would be divest-
president for renewable generation, Thomas ing its troubled onshore operations in Nigeria
Brostrom, said in a statement. He said the move while retaining its offshore assets. But the sales
was a “fundamental step for Shell in growing our process has been complicated in court cases
presence in emerging power markets.” revolving around the company’s responsibility
The transaction sum was not disclosed. for past environmental damage.™
Shell has been acquiring renewable power

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