Shell Acquires a 609 MW Gas Turbine Power Plant in the United States

Shell plc SHEL enters an accord to acquire RISEC Holdings, LLC, through its subsidiary Shell Energy North America (“SENA”). Per the agreement, SENA will acquire a 609-megawatt (MW) two-unit combined-cycle gas turbine power plant in Rhode Island, United States, which will help the company secure a long-term energy supply for Shell in the deregulated New England power market. SENA, already a recognized player in this market with an energy conversion agreement with RISEC since 2019, will further strengthen its position with this new acquisition.Shell’s Position in the New England Power MarketDue to growing decarbonization efforts, the demand for energy in the ISO New England market is set to increase. Therefore, Shell’s acquisition positions it well to provide reliable energy in this scenario and capitalize on its existing trading portfolio through its strong knowledge of the plant’s performance.According to the company, this acquisition will open new trading opportunities and will add value to Shell’s trading portfolio while securing a strong position in the market. The cost of the acquisition will be covered by the existing cash capital expenditure guidance of the company without further increasing its capital expenditure. The acquisition is expected to close by the first quarter of 2025, subject to approvals by regulatory bodies, and promises a high internal rate of return.Combined-Cycle Technology Leading to Reduced EmissionsRISEC’s combined-cycle gas turbine power plant uses gas turbines to generate electricity, which captures waste heat to produce steam, thereby leading to reduced emissions. This technology complements renewable energy sources like wind and solar, and provides reliable and secure power on demand.SHEL is committed to providing sustainable energy solutions by transitioning toward cleaner energy sources.Two other energy majors leading the energy transition race are BP plc BP and Eni SpA E.BP is seeking to capitalize on the global economy's transition to lower-carbon fuels. Apart from focusing strongly on oil production growth, the company has been investing in renewable energy businesses with a plan to ramp up capital spending for non-oil and gas businesses. BP has plans to become carbon-neutral by 2050.Eni has been building a full set of decarbonized products and services for clients to achieve carbon neutrality by mid-century. Even though the energy business scenario is challenging, Eni’s efficient exploration keeps it highly competitive.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP): Free Stock Analysis Report Eni SpA (E): Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks