Shell is planning to promote its offshore wind farm belongings in a deal that would increase greater than $1 billion, Bloomberg stories.
Reuters, which reported on Bloomberg’s report on Friday, mentioned Shell has employed Rothschild & Co and PJT Companions as advisers, and that the gross sales course of is prone to happen round 2027. Shell declined to remark to Reuters, which additionally mentioned it couldn’t independently confirm Bloomberg’s report.
The accessible reporting remains to be preliminary, so it doesn’t specify which offshore wind belongings are being offered, the place they’re positioned, whether or not they’re working or nonetheless in improvement, or who the possible patrons are. So whereas it’s an enormous headline, we don’t but know any particulars.
However the path Shell is headed in is fairly darn clear, if it wasn’t earlier than. Since Wael Sawan took over as CEO in 2023, Shell has repeatedly signaled that it desires to place extra capital behind oil, gasoline, and particularly LNG, whereas changing into far more selective about renewables.
Shell has already begun a pullback on offshore wind. Shell offered its 50% stake in SouthCoast Wind Power off the Massachusetts coast in March 2024, took a $1 billion write-off on Atlantic Shores in New Jersey whereas in search of to monetize that stake in October 2025, exited the MunmuBaram floating wind challenge in South Korea in November 2025, and pulled again from the CampionWind and MarramWind tasks off Scotland the identical month. Reuters reported in February that the oil large is reviewing strategic choices for Sprng Power in India, which Shell purchased for $1.55 billion in 2022.
In the meantime, Shell retains getting louder about gasoline. Sawan mentioned LNG can be Shell’s largest contribution to the power business over the subsequent decade. Sawan isn’t mincing phrases about what Shell thinks deserves long-term capital and what doesn’t.
What makes Shell’s transfer matter is that it comes at a time when Europe nonetheless wants extra offshore wind, not much less. In Europe, complete offshore wind installations handed 38 GW, making up 42% of worldwide offshore wind capability by the tip of 2025. The UK, as an illustration, plans one other 6 GW leasing spherical in 2027, following its newest subsidy public sale, which secured 8.2 GW. So the coverage push remains to be there.
Electrek’s Take
That is one other case of a fossil-fuel large deciding that the power transition is okay so long as another person does the arduous work and spends the capital.
Shell’s exit doesn’t robotically kill the belongings; Atlantic Shores and ScottishPower have each mentioned the tasks Shell pulled out of can nonetheless transfer ahead.
However Shell is saying loud and clear that it’s betting LNG will ship higher returns than offshore wind, whilst governments preserve constructing coverage frameworks round wind as a core decarbonization know-how.
Learn extra: Shell renewables head steps down after CEO shifts firm focus again to grease and gasoline
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