Shell has agreed to sell its European onshore renewables business to TotalEnergies as the energy giant continues to reshape its portfolio.

The deal includes around 500MW of solar and wind assets that are either operational or under construction, primarily in Italy and the Netherlands, alongside a 3.5GW pipeline of solar, wind and battery storage projects across Italy, the UK and Spain.

In total, the transaction covers a 4GW renewables portfolio.

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The transaction is subject to regulatory approvals and is expected to be completed this year.

It is set to strengthen TotalEnergies' renewable power generation portfolio in European markets.

Power portfolio

Machteld de Haan, president for downstream, renewables and energy solutions at Shell, said: “This agreement reflects Shell’s continued focus on actively managing and high-grading its power portfolio in line with the strategy set out at capital markets day 2025.

“We are recycling capital and prioritising areas where we have differentiated capabilities and can create the most value over time, including through asset-backed power trading and customer-focused energy solutions.”