Singapore-based Cleantech Renewable Assets Pte. Ltd, which operates under the name Cleantech Solar, has agreed to sell a 49% stake in the company to Shell Eastern Petroleum Pte. Ltd, the firm said in a release.
The deal, whose value was not disclosed, is expected to close in January 2019.
Cleantech Solar is a developer, owner, and operator of commercial and industrial solar projects in Southeast Asia and India. It will continue to operate under its existing management and name.
Shell can increase the stake in the company after 2021.
This investment will be Shell’s second major solar bet this year, according to the release. In 2018, Shell’s new energies division had acquired 43% stake in US-based Silicon Ranch.
Shell New Energies was set up in 2016 to focus on new fuels and power. Shell, which aims to make electricity a significant part of its business, is investing in developing alternative fuels for transport such as advanced biofuels and hydrogen.
Marc van Gerven, vice-president of solar and storage at Shell, said, "We are very impressed by Cleantech Solar’s record of developing lasting relationships with multinational and regional corporations that are eager to implement subsidy-free renewable energy in their corporate strategies.”
Raju Shukla, chairman and founder of Cleantech Solar, said, “This partnership with Shell, a global energy company, brings their resources and capabilities as they build a global renewable power business and it gives us a tremendous boost in our home region.”
Cleantech Solar is a provider of renewable energy to corporations in Southeast Asia and India. It owns and operates more than 120 solar power plants across the region, representing over 200 megawatts of projects, with the majority being in operation and the rest under construction and in development.