Global oil giant, Royal Dutch Shell, has acquired Nigerian solar energy provider, Daystar Power, as part of efforts to cut its greenhouse gas emission and focus on renewables.
Daystar announced in a statement Wednesday that the takeover awaits regulatory approval and will enable Shell renewable solutions business to deliver carbon emission reductions and power cost savings to commercial and industrial businesses across Africa.
The company however declined to disclose the value of the deal.
The Chief Executive Officer of Daystar, Jasper Graf von Hardenberg, said his company needed to raise more money to meet growing demand but opted to sell to Shell due to the company’s strong balance sheet and long history in Africa.
He added that Shell’s acquisition will 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.
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.
Upon conclusion of the deals, Daystar said it aims to broaden its services to companies by offering standalone solar or hybrid solutions including gas generators.
“Companies need their own power solutions to drive down costs, compared to expensive grids or diesel generators,” it said in its statement.
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