Royal Dutch Shell (LON:RDSA) has bought a stake in Asia-focused firm Cleantech Solar, Reuters has reported. The deal marks the Anglo-Dutch energy giant’s second investment in solar power this year.
Shell’s share price fell in the previous session, giving up 1.33 percent to close at 2,266.00p, underperforming the broader London market. The group’s shares have given up just under six percent of their value over the past year.
Shell snaps up stake in Cleantech Solar
Reuters reported this week that Shell had agreed to acquire a 49 percent stake in Asia-focused firm Cleantech Solar. The Anglo-Dutch energy major will have an option to increase its holding in Cleantech after 2021. The deal is expected to close next month.
The move comes after earlier this year, Shell acquired a stake in US solar company Silicon Ranch Corporation.
Expansion in US offshore wind sector
In a separate development, The Times reported this morning that Shell had splashed out $175 million over the past week on the rights to develop hundreds of turbines in the waters off New Jersey and Massachusetts, which could power more than 1.5 million homes.
The newspaper quoted Dorine Bosman, vice-president for wind development at Shell, as saying that the group’s expertise from developing offshore oil and gas fields should help it to compete against established offshore wind players to secure subsidy contracts needed for the proposed wind farms to go ahead.
Shell’s latest investments come after earlier this month, the FTSE 100 group unveiled plans to set short-term targets as part of its long-term ambition to reduce the net carbon footprint of its energy products. The target setting process will start from 2020 and will run to 2050.