Shell has announced that it will sell its retail home energy businesses in the UK and Germany to Octopus Energy Group, a UK-based renewable energy supplier. The deal is part of a broader agreement to explore a potential partnership in electric vehicle charging.
The sale, which is subject to regulatory approval, is expected to be completed by the end of 2023. The financial details were not disclosed, but Shell Energy was reportedly valued at up to $100 million.
Shell Energy provides gas, power, and broadband services to around two million customers under the Shell Energy brand. Shell said that the divestment was in line with its strategy to prioritise countries, projects, and routes to market where it can deliver the most value.
Shell also said that it was exiting the home energy business in Europe, due to poor returns and a review of its retail operations. It is currently winding down its business in the Netherlands and transitioning those customers.
Shell faced criticism from some European investors earlier this year for its plan to continue investing in oil and gas production, while selectively investing in renewable energy solutions. Shell’s chief executive Wael Sawan defended the plan, saying that oil and gas would remain crucial for the energy system for a long time.
