Shell (LSE:SHEL) has signed an agreement to sell its European onshore renewables portfolio to French rival TotalEnergies, as the UK supermajor continues redirecting capital toward higher-return businesses.
The portfolio spans 0.5 gigawatts of operating and in-development renewable capacity, plus a pipeline of future projects across Italy, the Netherlands, Spain and the UK.
Neither company disclosed the sale price, though prior press reports had claimed Shell was preparing to auction the business with asset value pitched at roughly €1 billion to €1.5 billion.
The deal is subject to regulatory approvals and expected to close by the end of 2026.
"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," said Machteld de Haan, Shell's president of downstream, renewables and energy solutions.
The disposal follows through on a pledge made at Shell's 2025 Capital Markets Day to reallocate capital toward its strongest businesses.
Since taking over as chief executive three years ago, Sawan has steered Shell away from renewables and back toward oil and gas projects, a shift that has coincided with a doubling of second-quarter profit to near-record levels, driven partly by stronger LNG trading.
Shell's renewables and energy solutions segment posted adjusted earnings of $79 million in the quarter, versus a loss of $9 million a year earlier.
For TotalEnergies, the purchase extends an active reshuffling of its European power book; the French group is simultaneously selling a 50% stake in a separate 1.2GW solar and wind portfolio across Germany, Spain, France and Poland to KKR, a deal valuing those assets at €1.8 billion including debt.
News Intelligence what this means for the company
Shell is selling its 0.5GW European onshore renewables portfolio to TotalEnergies, completing a strategic pivot under CEO Wael Sawan away from low-carbon power toward oil, gas and trading. The deal, valued at €1–1.5 billion by market sources (though undisclosed by the parties), closes a chapter on Shell's renewables ambitions and frees capital for higher-return hydrocarbon and trading businesses—a shift that has already shown results, with the renewables segment swinging to $79 million adjusted earnings in Q2 versus a $9 million loss a year prior.
- TotalEnergies is simultaneously reshuffling its own European power book, selling a 50% stake in a 1.2GW solar and wind portfolio to KKR for €1.8 billion including debt, suggesting active portfolio rebalancing across major European energy majors.
The sale reinforces Shell's capital-allocation discipline under Sawan: exiting lower-return renewables to concentrate on integrated gas, upstream, and trading where it claims differentiated capability. Whether this pivot sustains Shell's recent earnings momentum—driven partly by LNG trading strength—depends on commodity price cycles and the durability of trading returns, not on renewable assets now leaving the portfolio.
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