Shell Energy North America (US), L.P. (SENA), a subsidiary of Shell plc, has completed its acquisition of RISEC Holdings, LLC (RISEC), securing a 100% equity stake in a 609-megawatt (MW) two-unit combined-cycle gas turbine power plant in Rhode Island, USA. The deal reinforces SENA's strategic presence in the deregulated Independent System Operator New England (ISO New England) power market.

The acquisition is a key move for Shell to maintain long-term supply and capacity offtake in this priority trading region. ISO New England is poised for growing power demand in the coming decades, driven by decarbonization efforts in sectors such as home heating and transportation. With its focus on supporting the transition to cleaner energy, Shell aims to position itself as a reliable provider of energy solutions in this evolving market.

This transaction aligns with Shell’s broader energy strategy while fitting within its existing cash capital expenditure guidance, which remains unchanged. By adding this high-efficiency power generation asset to its portfolio, Shell strengthens its role in meeting future energy needs and supporting decarbonization goals across the region.

Shell has completed the acquisition of RISEC Holdings, LLC, ensuring the continuation of a 2019 energy supply agreement and securing long-term energy offtake from the RISEC power plant. This move strengthens Shell’s position in the ISO New England power market, maintaining Shell Energy North America’s (SENA) operations while mitigating market risks through a reliable and stable energy source.

Located near Providence, Rhode Island, the RISEC plant features a two-unit combined-cycle gas turbine system with a maximum capacity of 609 MW and an average operating capacity of 594 MW. In operation since 2002, the plant generates electricity using gas turbines and captures waste heat to produce steam for additional power generation. This combined-cycle process enhances efficiency and reduces emissions compared to single-cycle plants, providing a dependable energy source that complements intermittent renewables like wind and solar.

The acquisition is expected to generate a robust internal rate of return, exceeding the hurdle rate set for Shell’s Power business. Before the transaction, the plant was jointly owned by funds managed by Carlyle (51%) and EGCO RISEC II, LLC, a subsidiary of Thailand’s Electricity Generating Public Company Limited (EGCO) (49%).

SENA, with more than 25 years of experience in North American energy markets, is a recognized leader in wholesale and retail power, natural gas, and environmental products. This acquisition aligns with Shell’s commitment to meeting the rising demand for decarbonized energy in the ISO New England region while ensuring the availability of reliable and efficient power generation for the future.