Renewable energy supplier Evolve Energy has signed a long-term trading agreement with Shell Energy Europe Ltd (SEEL).
Following nine months of negotiations, this freshly-inked deal will see SEEL providing Evolve Energy with access to a range of renewable energy assets, as well as commodity hedging services. Under this partnership, Evolve Energy is aiming to grow its power supply from its present 1.2TWh each year to 4.2TWh per annum by 2031.
Evolve Energy works with UK-based industrial and commercial businesses in order to supply this sector with renewable energy. Much of the firm’s approach is tailored to businesses with moderate energy needs seeking to decarbonise, but struggling to access corporate power purchase agreements (CPPAs) due to stringent creditor requirements.
James Hall, operations director at Evolve Energy, commented: “We’re delighted to announce this agreement with SEEL, the result of nine months of hard work and collaboration. Together, we’ve developed a framework that integrates significant renewable energy volumes. While we had interest from other parties, it was crucial to partner with an organisation that deeply understands our business and shares our vision. This agreement not only secures a robust foundation for future growth but also strengthens our financial resilience, enabling us to navigate volatile commodity markets and credit challenges that often hinder non-investment-grade organisations.”
Shell adjusts priorities
This news comes less than a month after Shell announced it would step back from offshore wind development and focus its attention on offtake contracts.
As previously reported on Current±, the oil and gas major revealed that it will not lead new offshore wind developments but would continue to develop projects it already has underway. The move was made in an effort to reduce costs and raise revenues, an effort largely led by CEO Wael Sawan.
