British multinational oil and gas company, Shell, is set to acquire Nigerian-based solar power solutions company, Daystar Power, as part of the major’s strategy to diversify its energy portfolio in line with the energy transition whilst expanding its footprint across Africa’s expanding power industry.
According to Thomas Brostrøm, Shell’s Executive Vice-President, Renewable Generation, “This deal marks our first power acquisition in Africa and a fundamental step for Shell in growing our presence in emerging power markets. We have had a long and established presence in West Africa and with Daystar Power, we are taking our first steps into the renewable power space.”
The acquisition, which awaits regulatory approval, will enable Shell to expand its role in boosting energy access whilst ensuring energy sustainability across the African region, Brostrøm continued.
The CEO emphasized that the acquisition will pave the way for an increase in solar power project deployment to reduce carbon emissions as well as the reliance on expensive diesel generators for commercial and industrial consumers across the African market.
Daystar Power says it will leverage Shell’s global expertise in project developments to expand its footprint not only across West Africa but in East and Southern Africa as the company targets to deploy 400 MW of solar capacity by 2025.
Jasper Graf von Hardenberg, CEO and Co-founder of Daystar Power, added that “We have seen booming demand for solar energy in the African markets where we operate. That has been reflected in our growth: we are on-track to increase our installed solar capacity by 135% in 2022. As part of Shell, we will be able to execute our mission even faster to deliver carbon emission reductions and power cost savings to businesses across Africa.”