Shell Invests More than Half a Billion Dollars in Australian Power Market
- November 22, 2021
- Posted by: Quatro Strategies
- Category: Infrastructure
Royal Dutch Shell bought Meridian Energy’s local electricity business in Australia to provide electricity to households for the first time. The deal is worth $528 million. Shell previously acquired Australia’s biggest power supplier to commercial businesses in 2019. The new acquisition is in line with the company’s plan to double its power business to 560 terawatt hours a year by 2030.
Shell said in a statement that their aim was to become a leading supplier of clean power and this acquisitin expanded their customer portfolio in Australia.
Meridian’s local electricity and gas retail business is Australia’s 10th largest, and has more than 185,000 customers with a 1% residential market share.
Shell will acquire Meridian’s 300 MWs of Australian assets including wind farms and hydropower, as well as two projects of wind farm development and energy storage.
After Meridian decided to sell its power business, it attracted interest from several companies including Spain’s Iberdrola and Italy’s Enel.
After Shell gets the approval for foreign investment from the Australian Government, the deal is expected to finalize in early 2022.
Get your daily Business Brief
Business Brief delivers the latest insights straight to your inbox
You'll get daily industry insights on
Energy, Cleantech, Oil & Gas, Mining, Defense, Aviation, Construction, Transportation, Online Retail, Bigtech, Finance and Politics of Business
Read more insights
G7 Sets Dec. 5 Target Date for Price Cap on Russian Oil
The G7 most advanced economies of the world aim to implement a price capping mechanism on Russian oil exports by Dec. 5, when the European Union sanctions on seaborne imports of Russian crude come into effect. The G7’s goal is to align with the EU’s timing, which is already in place. The group wants to make sure the price cap goes into effect at the same time.
Canada’s Clean Energy Lobbyists Push for Change in Climate Regulation
Canada’s clean energy lobby groups argue that the country’s climate regulation, The Clean Fuel Standard, is out of line with its net-zero emission target. The plan is set to start in December next year, and is planned to become one of the pillars of Canada’s fight against climate change. However, a group of clean energy trade associations, producers and think tanks warn the government that the plan in its current form will not incentivize low carbon fuels but delay their adoption.
EU Imposes Tariffs on Chinese Steel Tower Imports
The European Union is set to impose tariffs on Chinese imports of steel towers used to produce wind turbines. The bloc concluded after an investigation that they were being sold at artificially low prices. The European Commission has imposed duties ranging from 7.2% to 19.2%.