Shell announced today that it is joining forces with cooperative Dutch pension fund service provider PGGM to explore the opportunity to participate in the controlled auction for the energy company Eneco that was announced in December 2018. They outlined their intentions in an open letter.
In the open letter PGGM and Shell express that they are impressed with Eneco’s role in the energy transition and that they share Eneco’s sustainable strategy and are determined to follow this strategy. With their combined knowledge, expertise, networks, financial commitment and ambitions they could competitively grow the renewable energy products and services offer for millions of customers, mainly in North West Europe. The two companies envision that Eneco could operate as a separate entity, from Rotterdam, with potential investments inside and outside of the Netherlands.
For PGGM, sustainability is a cornerstone of its investment policy for pension capital and therefore Eneco would be a good addition to its growing global portfolio of sustainable investments which provide concrete climate solutions (currently valued at over 8 billion dollar), lower the carbon footprint of pension capital and offer a unique chance to invest directly in the Dutch economy.
“The energy transition offers good opportunities for long-term investments in a more sustainable economy and we think Eneco can play a central role in realising the consortium’s shared ambitions. PGGM and Shell bring complementary experience and expertise across Eneco’s activities, which will support the delivery of affordable sustainable energy to a growing number of customers in North West Europe,” says Frank Roeters van Lennep, Chief Investment Officer Private Markets PGGM.
A possible joint acquisition of Eneco would also fit Shell’s strategy to increase its role in the energy transition. It has established a New Energies business to create business opportunities for this purpose. Shell will bring to the company access to clean-tech research and development, connected mobility and digital start-ups as well as a substantial number of partners and customers.
“This provides opportunities along the entire energy value chain, from generation of renewable power to trading and delivery at home, on the road and at work,” says Shell’s Integrated Gas & New Energies Director Maarten Wetselaar. Eneco’s business neatly fits with Shell’s New Energies activities and ambitions to continuously find new ways to reduce carbon emissions and provide more and cleaner energy. The consortium is committed to expand and develop business models that create both societal and commercial value.”