Renewable Energy M&A: Shell forms partnership to develop 1 GW offshore wind farm in the Philippines
- Nov 24, 2022 8:23 am GMT
The company has partnered with Alternergy, a Filipino-led renewable energy company, for prospective development at the Calavite Passage in Mindoro. Alternergy will hold a 60% stake in the JV, with Shell holding the remaining 40%. The partnership “has obtained a wind energy service contract from the Department of Energy to assess the feasibility of the project. The assessment is expected to be completed within a five-year stretch.
According to Alternergy Chairman Vincent Perez, stated that the site of their prospective offshore project, as well as its neighboring blocks, has the potential to host up to 5 GW of capacity. The chairman expressed confidence in the technological innovation currently sweeping across the sector, citing the potential of installing 15 MW turbines. Both companies are also optimistic that the Philippine government would act quickly to address certain barriers to offshore wind development in the country. These include port infrastructure, integration of offshore wind capacities into the grid; demarcating exclusion or security zones for the developed facilities, and financial incentives.
The move marks Shell’s second major renewables collaboration in the Philippines and expands its presence to include onshore and offshore clean energy facilities. In Jul’22, the company partnered with Nickel Asia Corp to develop 1 GW of projects, comprising utility-scale solar PV while also looking into onshore wind and energy storage systems. Shell currently operates a 100 MW solar farm in the country’s Bataan province and is working on pilot geothermal projects in Mindoro and Biliran.
As per Enerdatics research, offshore wind initiatives account for nearly 50% of Shell’s renewables activity since 2017, with a majority of its operational assets and mature development pipeline focussed on Western Europe and the United States. Recent moves include partnerships with fellow oil and gas majors and experienced power companies to develop large-scale projects in Norway, France, and Iberia. In Asia, Shell is developing the 1.4 GW project in collaboration with CoensHexicon and is also exploring other floating wind opportunities with Korea Southern Power (KOSPO).
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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