Shell to acquire combined-cycle power plant in priority U.S. trading 
market 
 
 
   PR Newswire 
 
 
   HOUSTON, Oct. 23, 2024 
 
 
   HOUSTON, Oct. 23, 2024 /PRNewswire/ -- Shell Energy North America (US), 
 L.P. (SENA), a subsidiary of Shell plc (Shell), has signed an agreement 
to acquire a 100% equity stake in RISEC Holdings, LLC (RISEC), which 
owns a 609-megawatt (MW) two-unit combined-cycle gas turbine power plant 
in Rhode Island, USA. 
 
 
 
   This acquisition secures long-term supply and capacity offtake for Shell 
in the deregulated Independent System Operator New England (ISO New 
England) power market, where SENA has held a contract with RISEC under 
an energy conversion agreement for 100% of the plant's energy offtake 
since 2019. 
 
 
   "Shell has had a successful integrated gas and power business in the 
growing ISO New England market for over 20 years, and this acquisition 
secures valuable trading opportunities by guaranteeing SENA's position 
in the market," said Huibert Vigeveno, Shell Downstream, Renewables & 
Energy Solutions Director. "Our strong understanding of this plant's 
performance positions Shell to capitalise on its value within our 
existing trading portfolio." 
 
 
   RISEC's combined-cycle gas turbine power plant supplies power to the ISO 
New England power market, where demand is expected to increase in coming 
decades due to growing decarbonisation efforts in sectors such as home 
heating and transportation. 
 
 
   The acquisition will be absorbed within Shell's cash capital expenditure 
guidance, which remains unchanged. 
 
 
   The transaction is subject to regulatory approvals and is expected to 
close in Q1 2025. 
 
 
   Notes to editors 
 
 
   -- With RISEC signaling an intent to sell, this acquisition allows Shell to 
 
      continue an energy supply agreement that has been in place since 2019 and 
 
      secure long-term energy offtake from the plant, maintaining Shell's 
 
      position in the ISO New England power market. The acquisition preserves 
 
      SENA's current operations and mitigates market risk by ensuring a 
 
      reliable and stable power generation source. 
 
 
 
   -- RISEC's two-unit combined-cycle gas turbine power plant has a maximum 
 
      capacity of 609 MW and an average operating capacity of 594 MW. Serving 
 
      the ISO New England market, the plant is located outside Providence, 
 
      Rhode Island, and has been in operation since its completion in 2002. 
 
 
 
   -- Combined-cycle gas turbine power plants generate electricity via gas 
 
      turbines, and capture waste heat to produce steam, which drives steam 
 
      turbines for additional power: a process which enhances efficiency and 
 
      reduces emissions compared to single-cycle power plants. Such plants 
 
      provide reliable, flexible power, which balances the intermittency of 
 
      renewable energy sources like wind and solar. 
 
 
 
   -- The acquisition is projected to generate an internal rate of return $(IRR)$ 
 
      well in excess of the hurdle rate set for Shell's Power business. 
 
 
 
   -- The parent company of RISEC is 51% owned by funds managed by global 
 
      investment firm Carlyle. The remaining 49% owner of RISEC is EGCO RISEC 
 
      II, LLC, a subsidiary of Electricity Generating Public Company Limited 
 
      (EGCO), a Thai public limited company. 
 
 
 
   -- SENA is a full-service energy company providing energy solutions across 
 
      all aspects of the market. SENA has been active in North American 
 
      wholesale energy markets for over 25 years and is a market leader in 
 
      wholesale and retail power, natural gas, and environmental products. 
 
 
   Cautionary note 
 
 
   The companies in which Shell plc directly and indirectly owns 
investments are separate legal entities. In this press release "Shell", 
"Shell Group" and "Group" are sometimes used for convenience where 
references are made to Shell plc and its subsidiaries in general. 
Likewise, the words "we", "us" and "our" are also used to refer to Shell 
plc and its subsidiaries in general or to those who work for them. These 
terms are also used where no useful purpose is served by identifying the 
particular entity or entities. "Subsidiaries", "Shell subsidiaries" 
and "Shell companies" as used in this press release refer to entities 
over which Shell plc either directly or indirectly has control. The term 
"joint venture", "joint operations", "joint arrangements", and 
"associates" may also be used to refer to a commercial arrangement in 
which Shell has a direct or indirect ownership interest with one or more 
parties. The term "Shell interest" is used for convenience to indicate 
the direct and/or indirect ownership interest held by Shell in an entity 
or unincorporated joint arrangement, after exclusion of all third-party 
interest. 
 
 
   Forward-looking Statements 
 
 
   This press release contains forward-looking statements (within the 
meaning of the U.S. Private Securities Litigation Reform Act of 1995) 
concerning the financial condition, results of operations and businesses 
of Shell. All statements other than statements of historical fact are, 
or may be deemed to be, forward-looking statements. Forward-looking 
statements are statements of future expectations that are based on 
management's current expectations and assumptions and involve known and 
unknown risks and uncertainties that could cause actual results, 
performance or events to differ materially from those expressed or 
implied in these statements. Forward-looking statements include, among 
other things, statements concerning the potential exposure of Shell to 
market risks and statements expressing management's expectations, 
beliefs, estimates, forecasts, projections and assumptions. These 
forward-looking statements are identified by their use of terms and 
phrases such as "aim"; "ambition"; "anticipate"; "believe"; 
"commit"; "commitment"; "could"; "estimate"; "expect"; "goals"; 
"intend"; "may"; "milestones"; "objectives"; "outlook"; 
"plan"; "probably"; "project"; "risks"; "schedule"; "seek"; 
"should"; "target"; "will"; "would" and similar terms and phrases. 
There are a number of factors that could affect the future operations of 
Shell and could cause those results to differ materially from those 
expressed in the forward-looking statements included in this press 
release including (without limitation): (a) price fluctuations in crude 
oil and natural gas; (b) changes in demand for Shell's products; (c) 
currency fluctuations; (d) drilling and production results; (e) reserves 
estimates; (f) loss of market share and industry competition; (g) 
environmental and physical risks; (h) risks associated with the 
identification of suitable potential acquisition properties and targets, 
and successful negotiation and completion of such transactions; (i) the 
risk of doing business in developing countries and countries subject to 
international sanctions; (j) legislative, judicial, fiscal and 
regulatory developments including regulatory measures addressing climate 
change; (k) economic and financial market conditions in various 
countries and regions; (l) political risks, including the risks of 
expropriation and renegotiation of the terms of contracts with 
governmental entities, delays or advancements in the approval of 
projects and delays in the reimbursement for shared costs; (m) risks 
associated with the impact of pandemics, such as the COVID-19 
(coronavirus) outbreak, regional conflicts, such as the Russia-Ukraine 
war, and a significant cybersecurity breach; and (n) changes in trading 
conditions. No assurance is provided that future dividend payments will 
match or exceed previous dividend payments. All forward-looking 
statements contained in this press release are expressly qualified in 
their entirety by the cautionary statements contained or referred to in 
this section. Readers should not place undue reliance on forward-looking 
statements. Additional risk factors that may affect future results are 
contained in Shell plc's Form 20-F for the year ended December 31, 2023 
(available at 
www.shell.com/investors/news-and-filings/sec-filings.html and 
www.sec.gov). These risk factors also expressly qualify all 
forward-looking statements contained in this press release and should be 
considered by the reader. Each forward-looking statement speaks only as 
of the date of this press release October 23, 2024. Neither Shell plc 
nor any of its subsidiaries undertake any obligation to publicly update 
or revise any forward-looking statement as a result of new information, 
future events or other information. In light of these risks, results 
could differ materially from those stated, implied or inferred from the 
forward-looking statements contained in this press release. 
 
 
   Shell's Net Carbon Intensity 
 
 
   Also, in this press release we may refer to Shell's "Net Carbon 
Intensity" $(NCI)$, which includes Shell's carbon emissions from the 
production of our energy products, our suppliers' carbon emissions in 
supplying energy for that production and our customers' carbon emissions 
associated with their use of the energy products we sell. Shell's NCI 
also includes the emissions associated with the production and use of 
energy products produced by others which Shell purchases for resale. 
Shell only controls its own emissions. The use of the terms Shell's "Net 
Carbon Intensity" or NCI are for convenience only and not intended to 
suggest these emissions are those of Shell plc or its subsidiaries. 
 
 
   Shell's net-zero emissions target 
 
 
   Shell's operating plan, outlook and budgets are forecasted for a 
ten-year period and are updated every year. They reflect the current 
economic environment and what we can reasonably expect to see over the 
next ten years. Accordingly, they reflect our Scope 1, Scope 2 and NCI 
targets over the next ten years. However, Shell's operating plans cannot 
reflect our 2050 net-zero emissions target, as this target is currently 

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