Shell is set to acquire 43.83% shares of Silicon Ranch Corporation, a leading U.S. developer owner and operation of solar plants. This buying of shares will make Shell its largest shareholder. Shell will acquire the interest in Silicon Ranch from Partners Group and is likely to increase its position after 2021. Partners Group will continue its support through a newly issued junior debt financing simultaneous with the closing of the sale. The transaction is subject to regulatory approvals and is expected to close in the first quarter of 2018.
Silicon Ranch will continue under its existing management. Doubling its operating portfolio for three consecutive years, with approximately 880 megawatts of PV systems that are contracted, under construction. It is operating in 14 states from New York to California in the U.S and is close to 1 gigawatt more in its development pipeline. Employing a differentiated, demand driven approach to business development across a diverse customer set and a special long term relationships with electric cooperatives, military partners and corporate customers across the country, Silicon Ranch Corporation has been an innovator.
This transaction will enable Silicon Ranch to develop new projects, enter new markets and expand product offering as well as expand in the U.S which is the second largest solar market in the world.
According to Marc van Gerven, Shell Vice President of Solar:
“We were impressed by Silicon Ranch’s proven track record, its market-led development strategy, and its long-term ownership model and commitment to the communities it serves. Partnering with Silicon Ranch progresses our New Energies strategy and provides our U.S. customers with additional solar renewable options. With this entry into the fast-growing solar sector, Shell is able to leverage its expertise as one of the top three wholesale power sellers in the U.S., while expanding its global New Energies footprint.”
Matt Kisber, Silicon Ranch Co-Founder and CEO said the following about the transaction:
“Our goal at Silicon Ranch has always been to ensure that Americans have access to a reliable, affordable, and clean energy supply, and we are honored to welcome Shell as our newest business partner. By pairing our solar expertise and trusted brand with the scale, resources, and brand equity of Shell, we are well-equipped to collaborate with our utility partners to provide comprehensive, win-win energy solutions for them and their customers. As we welcome Shell to our team, Silicon Ranch also wants to thank Partners Group for the financial and commercial support that enabled us to surpass our ambitious growth targets over the last two years.”
Reagan Farr, Silicon Ranch Co-Founder and CFO added the following:
“Shell shares our steadfast commitment to long-term partnership, and together we will unlock tremendous value in the U.S. solar market. This significant and strategic investment by Shell is in the best interest not only of our company and our employees, but also of our customers and the communities we serve, because it will allow us to capture synergies with Shell’s businesses and benefit from its long heritage in providing energy services around the world.”
About Silicon Ranch Corporation
Headquartered in Nashville, U.S, Silicon Ranch Corporation is a leading developer, owner and operator of solar energy plants. Its operating portfolio includes more than 100 facilities across the U.S. Founded in 2010; the company owns and operates a solar array in Social Circle, Georgia; and a solar facility at Volkswagen’s Chattanooga manufacturing facility in Tennessee. Silicon Ranch Corporation also operates a regional energy-training center that provides classroom and on-the-job training in solar installation, maintenance, and weatherization activities; and assists clients with project development and financing options.
A producer of oil and gas and petrochemicals, Shell is a company that was established in 1922. Shell mainly focuses on oil and gas exploration and production; oil and natural gas production; gasoline and natural gas marketing; and petrochemical manufacturing and offers motor oils and lubricants, lubricants and motor oils for heavy duty engines, and preventative maintenance services; chemicals for industrial markets; gasoline, diesel, and heating oils for B2B customers; and lubricants for businesses that include agriculture, construction, transport, manufacturing, metals, mining and quarries, and power.