Shell acquires US gas-fired CCGT power generation facility

Shell Energy North America (SENA), a subsidiary of global major Shell, said October 23 it had agreed to acquire a 100% equity interest in RISEC Holdings, which owns a 609-MW gas-fired combined cycle gas turbine power plant outside Providence, Rhode Island.

RISEC Holdings’ parent company, Rhode Island State Energy System, is owned 51% by funds managed by global investment firm Carlyle and 49% by a subsidiary of Thailand’s Electricity Generating Public Company (EGCO).

The acquisition of the two-unit power plant secures long-term supply and capacity offtake for Shell in the deregulated Independent System Operator New England (ISO New England) power market, where SENA has held a contract with RISEC for 100% of the plant’s power supply since 2019.

“Shell has had a successful integrated gas and power business in the growing ISO New England market for over 20 years, and this acquisition secures valuable trading opportunities by guaranteeing SENA’s position in the market,” said Huibert Vigeveno, Shell’s Downstream, Renewables & Energy Solutions director. “Our strong understanding of this plant’s performance positions Shell to capitalise on its value within our existing trading portfolio.”

The facility supplies power to the ISO New England power market, where demand is expected to increase as decarbonisation efforts ramp up in the home heating and transportation sectors.

The transaction is subject to regulatory approvals and is expected to close in Q1 2025.