Shell acquires Rhode Island power plant

January 25, 2025 — In a significant move to bolster its market presence, Shell Energy North America (US), L.P. (SENA), a subsidiary of Shell plc, has announced the acquisition of RISEC Holdings, LLC (RISEC), securing 100% equity ownership of a 609-megawatt two-unit combined-cycle gas turbine power plant located in Rhode Island. This strategic deal, which reinforces Shell’s foothold in the deregulated Independent System Operator New England (ISO New England) power market, is poised to enhance the company’s energy supply and capacity coordination.

This acquisition forms a critical component of Shell’s long-term strategy, allowing the company to uphold an energy supply agreement that has been active since 2019. The move is anticipated to maintain SENA’s operational stability and mitigate market risks by ensuring access to a reliable power generation source as demand for energy in New England is projected to rise, largely driven by ambitious decarbonization initiatives in sectors like home heating and transportation.

The RISEC power plant, operational since 2002 and situated just outside Providence, benefits from combined-cycle technology which boosts efficiency and minimizes emissions compared to traditional single-cycle plants. This technology captures waste heat generated during electricity production, using it to produce steam that powers additional turbines, thus providing a more sustainable and flexible energy source capable of supporting the intermittent nature of renewable resources like solar and wind.

Financially, the acquisition falls within Shell's existing cash capital expenditure guidance, which remains unchanged, and is projected to generate an internal rate of return well beyond the threshold established for Shell's Power business.

Before the completion of this transaction, RISEC was primarily owned by funds managed by global investment firm Carlyle, holding a 51% stake, with the remaining 49% owned by EGCO RISEC II, LLC, a subsidiary of Thailand’s Electricity Generating Public Company Limited (EGCO).

SENA has been actively involved in North American wholesale energy markets for over 25 years, establishing itself as a market leader in both wholesale and retail power, natural gas, and environmental products.

As the energy landscape shifts towards more sustainable practices, Shell’s acquisition of the RISEC power plant underscores its commitment to renewable energy solutions and positions the company favorably in a rapidly evolving market.

More News