Shell Adds Gas-Fired Plant to Portfolio Amid Energy Transition

Shell Acquires RISEC Holdings to Enhance North America Energy Business
Shell Energy North America, Shell's subsidiary company, has announced the acquisition of RISEC Holdings. The purchase gives the group 100 percent equity interest in the entity. A 609-megawatt combined-cycle gas turbine power plant sits near Providence, Rhode Island as part of this deal.

RISEC power plants are said to be energy-efficient as compared to other single-cycle power plants. Because the natural gas is burnt inside the power plant, it can produce electricity along with capturing all the generated heat to produce more steam and further electricity could be produced with such steam. Combined cycle is more environmental because it reduces emissions as well as air pollution in producing power.

It improved the status of SENA since it now becomes one of the major players within the power market, being on the watchful eyes of the Independent System Operator New England that oversees competition amongst suppliers for electricity to assure the efficient and cheap generation of electricity in this region. The demand for electricity continues to rise with the acceleration of carbon emission reductions in sectors of heating and transportation wherein energy consumption is supposed to increase, hence increasing SENA's presence in ISO New England.

The plant, initially owned in joint ventures by Carlyle and EGCO, was operated by Shell for six years prior to acquiring the plant in full ownership. Now that the plant is fully owned, Shell is able to decrease market risks with no disruption to the power supply in the region.

This also fits in with Shell's diversification strategy of energy in North America. With Shell integrating power generation into its natural gas and environmental products, it positions itself to capture all the future energy opportunities and challenges.

The RISEC combined-cycle gas turbine plant will complement Shell's ability to provide energy solutions for the growing needs of the region. Its strategic location and efficiency make it a very valuable addition to Shell's asset portfolio, further cementing the company's role in driving energy reliability and sustainability in North America.

Source: Shell Energy North America