Oil giant Shell snaps up African solar provider Daystar Power

ABUJA - Oil giant Royal Dutch Shell will buy African solar provider Daystar Power as it expands its global renewables portfolio, the companies have said.

Shell is one of the most influential oil producers in Africa, but the Daystar purchase is its first power acquisition on the continent, underscoring its mandate to cut its greenhouse gas emissions in half by 2030.

"As we do this, we're helping to address a critical energy gap for many who currently rely on diesel generators for backup power," Thomas Brostrøm, Shell's vice president for renewable generation, said in a statement.

Neither Shell nor Daystar commented on the sale price. Shell earmarked $2-3 billion in capital expenditure for renewables and energy solutions in 2022.

Daystar, headquartered in Lagos, provides off-grid power to commercial and industrial clients in Nigeria, Ghana, Togo and Senegal, offering solar and hybrid power solutions with battery storage.

It has 300 power installations with installed solar capacity of 32 megawatts, but aims to boost capacity to 400 MW by 2025.

It also plans to expand to eastern and southern Africa, a goal that Daystar chief executive Jasper Graf von Hardenberg said would be easier to reach with Shell.

Pending regulatory approvals, Shell will fully own Daystar, but von Hardenberg and the management team will continue to run the company.

Shell's renewables and energy solutions division accounted for six percent of company earnings in the second quarter, but new chief executive Wael Sawan is accelerating the drive for cleaner power. –