Shell reorganizes US power portfolio with two deals

Shell subsidiary Shell Energy North America has signed two transactions to manage its power portfolio in the United States. The company agreed to sell its interests in RISEC Holdings to Constellation Energy Generation for $715 million. At the same time, it signed an agreement to acquire 100% equity in Hunlock Creek Generating from Riverview Power Holdings, an indirect subsidiary of Castleton Commodities International.

RISEC owns a 609-megawatt, two-unit combined-cycle gas turbine power plant serving the New England power market. Shell has held an energy conversion agreement for the facility's full electricity output since 2019, which will end when the sale closes. Shell said the transaction allows it to accelerate returns through a significant gain on the sale.

Through the Hunlock acquisition, Shell secures 169 megawatts of natural gas-fired generation in Pennsylvania. The portfolio includes a two-unit, 125-megawatt combined-cycle plant and a 44-megawatt simple-cycle peaking plant. The asset provides capacity in the Mid-Atlantic grid operated by PJM Interconnection, which manages electricity across 13 states and the District of Columbia for more than 65 million people. Shell stated the acquisition is projected to deliver returns exceeding requirements set at its 2025 Capital Markets Day.

Both transactions require regulatory approvals and are scheduled to close in the first quarter of 2027.