Silicon Ranch, a developer, owner, and operator of solar projects in the U.S., signed an agreement to make Shell its largest shareholder. As part of the agreement, Shell will acquire a 43.83% interest in Silicon Ranch from Partners Group, the global private markets investment manager, for up to $217 million in cash based on Silicon Ranch performance, with the possibility to increase its position after 2021. Partners Group will continue to support Silicon Ranch through a newly issued junior debt financing simultaneous with the closing of the sale. Subject to regulatory approvals, the transaction is expected to close in Q1 2018. Nashville-based Silicon Ranch will continue to operate under its existing management and the Silicon Ranch brand. The transaction will enable Silicon Ranch to accelerate its growth strategy by developing new projects, entering new markets, and expanding product offerings across its portfolio. The strategic partnership provides Shell a platform to establish a successful global solar business by aligning with a proven team in the second largest solar market in the world.
Seperately, Husk Power Systems, a rural distributed utility company operating mini-grids in Asia and Africa, announced a $20 million equity investment by Shell Technology Ventures, Swedish development finance institution Swedfund International and ENGIE Rassembleurs d’Energies, ENGIE group’s impact investment fund. “We see Husk as a leading player providing reliable and affordable energy to off-grid and weak-grid communities in India and Africa and we believe they have a very credible business model“, said Brian Davis, Vice President, Integrated Energy Solutions for New Energies at Shell. “We believe that decentralized
solutions will play an important role in providing productive energy to customers who currently lack reliable power. This investment is an important step for our Energy Access portfolio and we look forward to helping the business to scale and reach its growth aspirations“.
Silicon Ranch, Jan 15
Husk Power Systems, Jan 15