Shell Energy North America completes acquisition of Rhode Island combined-cycle power plant RISEC

Shell Energy North America (SENA), a subsidiary of UK‘s Shell plc, has finalized its acquisition of a 100% equity stake in RISEC Holdings, LLC (RISEC), which operates a 609-megawatt (MW) combined-cycle gas turbine power plant in Rhode Island, according to a Shell press release.

RISEC is partly owned by Thai public limited company Electricity Generating Public Company Limited’s subsidiary, EGCO RISEC II, LLC

The acquisition reinforces SENA’s strategic presence within the deregulated Independent System Operator New England (ISO New England) power market, ensuring long-term energy supply and capacity commitments. With anticipated growth in power demand due to regional decarbonization initiatives in home heating and transportation, this move appears to position Shell advantageously for the future.

The financial integration of this acquisition does not alter Shell’s previously announced cash capital expenditure guidance. This deal extends an energy supply agreement established in 2019, securing stable and reliable energy offtake from the Rhode Island plant, thereby reducing market risk while maintaining SENA’s operational footprint.

Located just outside Providence, the RISEC power plant has been operational since 2002, boasting an average operational capacity of 594 MW. Its technology employs combined-cycle gas turbines, which not only enhance efficiency, but also minimize emissions by utilizing waste heat to generate additional power through steam turbines. This capability supports the integration of less predictable renewable energy sources into the grid.

Before the acquisition, RISEC was partially owned by funds managed by the global investment firm Carlyle with a 51% stake, while the remaining 49% was held by EGCO RISEC II.

SENA signed the agreement to make the acquisition in October of last year, with Shell Downstream, Renewables & Energy Solutions director Huibert Vigeveno saying at the time, “Shell has had a successful integrated gas and power business in the growing ISO New England market for over 20 years, and this acquisition secures valuable trading opportunities by guaranteeing SENA’s position in the market.”

“Our strong understanding of this plant’s performance positions Shell to capitalise on its value within our existing trading portfolio.”

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