British oil and gas company Shell announced on Monday its approval to sell Sprng Energy to Indian renewable energy company Aditya Birla Renewables Limited for $1.8 billion, as part of the British company's efforts to reduce its investment portfolio.

Under the terms of the deal, Shell Overseas Investment, wholly owned by Shell, will sell its entire stake in Solenergy Power Private Limited, including the Sprng Energy group of companies.

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Sprng Energy manages a portfolio of renewable energy projects in India with a capacity of 5 gigawatts, including 3.3 gigawatts of operating assets and 7.1 gigawatts under contract, supplying electricity from solar and wind energy to power distribution companies in India.

Shell said the deal aligns with its strategy to recycle capital and focus on an asset-backed trading approach in the electricity sector, as it aims to improve its returns by 2030.

The deal is expected to be completed by the end of this year after obtaining official approvals and meeting customary conditions.