Royal Dutch Shell has signed an agreement to acquire a 43.83 percent interest in Silicon Ranch Corporation.
The company, headquartered in Nashville, Tennessee, reportedly has a project and development funnel portfolio of approximately 1.9 gigawatts of capacity.
This investment is part of Shell's New Energies power portfolio, which prioritizes low carbon generation and storage. Shell's interest in Silicon Ranch includes an existing portfolio of approximately 880 megawatts of projects in operation or contracted.
Shell will pay between $193 million and $217 million, contingent on Silicon Ranch achieving predetermined milestones, the company said. A separate agreement with Silicon Ranch will give Shell the possibility to increase its ownership after 2021.
"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,” Shell solar vice-president Marc van Gerven said in a statement.