Royal Dutch Shell has concluded the acquisition of Daystar Power, a Nigeria-based hybrid renewable energy provider.
BizWatch Nigeria understands that the acquisition is part of Shell’s deliberate move to expand its global renewables footprint and seek to work towards its carbon emission reduction policy.
In a statement in which this development was disclosed, Daystar said the takeover awaits regulatory approval, adding that upon securing the go-ahead to operate, Shell would be enabled to use renewable solutions business to deliver carbon emission reductions and power cost savings to commercial and industrial businesses across Africa.
Reacting to the acquisition, the Chief Executive Officer (CEO) of Daystar, Jasper Graf von Hardenberg said in spite of the fact that the solar company needed to raise more funds to meet its growing demand, he opted to sell to Shell due to the latter’s strong balance sheet and long history in Africa.
Continuing, he added that Shell’s acquisition would help Daystar increase its installed solar capacity to 400mw by 2025 from 32mw and also expand services beyond Nigeria to East and Southern Africa where it is seeing increasing demand from South Africa.
“As part of Shell, we will be able to execute our mission even faster,” he said.
What you should know about Daystar Power and Shell
Headquartered in Lagos, Daystar provides off-grid power to commercial and industrial clients across West Africa. With networks in Ghana, Nigeria, Senegal, and Togo, the company offers solar and hybrid power solutions with battery storage.
Shell on its part maintains significant visibility in Africa, with interests in Algeria, Mauritania, Namibia, São Tomé and Príncipe, South Africa, and Tunisia. The company’s share of production, onshore and offshore, in Nigeria was 266 thousand boe/d in 2019, compared with 255 thousand boe/d in 2018. It says that security issues, sabotage, and crude oil theft in the Niger Delta remained significant challenges in 2019.
