The Anglo-Dutch titan has already said it will devote 10% of yearly spending to ‘new energies’ by 2025.
Shell announced on Tuesday plans to complete the purchase of Eolfi in December after it receives regulatory and ministerial approvals though the value of the deal was not disclosed.
France-based Eolfi develops onshore and offshore renewable energy projects and is running a pilot project to install three floating wind turbines balanced on semi-submersible floats off the coast of Brittany, where the water is too deep for turbines with fixed foundations.
Shell, which supplies around 3% of the world’s energy, set out plans in 2018 to spend US$1bn-$2bn annually over the next two years on new energies including renewables, but with the rest of its US$25bn budget invested in oil and gas, fossil fuels are still the backbone of the business.
Dorine Bosman, Shell’s vice president of offshore wind said that the union of “Eolfi’s expertise and portfolio with Shell’s resources and ability to scale-up will help make electricity a significant business for Shell”.
When the deal is done, Eolfi will be a wholly-owned subsidiary of Shell and will be fully integrated.
Eolfi’s founder Alain Delsupexhe added: “Joining forces with Shell will enable us to continue our mission of producing renewable and competitive electricity.”
Shares in Shell rose 1% to 2,325p in afternoon trading on Tuesday.