Shell Sells European Onshore Renewables Portfolio to TotalEnergies

Shell has finalized a deal to sell its European onshore renewable energy assets to TotalEnergies, the French company announced on Monday. This move comes as Shell aims to focus its investments on high-value ventures. The portfolio being transferred includes 0.5 gigawatts of renewable energy generation capacity currently operational and in development, along with a pipeline of future projects in Italy, the Netherlands, Spain, and the UK.

The deal must still meet regulatory requirements and is anticipated to conclude by the end of 2026. Shell had been contemplating this shift for over a year, as part of its strategy to ensure capital allocation towards ventures with the strongest long-term value. This decision was reiterated during the Capital Markets Day 2025, where the company outlined its plans.

Machteld de Haan, Shell's President for Downstream, Renewables, and Energy Solutions, stated that they are realigning their capital towards areas where they possess unique competencies and can generate the maximum value over time, such as asset-backed power trading and customer-centric energy solutions. It is worth noting that both European major oil companies, BP and Shell, have recently reversed their earlier commitments from the early 2020s to curtail oil and gas production by the end of the decade.

In fact, last year witnessed a resurgence in oil and gas investment and production, prompting increased exploration activities in significant basins and promising new regions. Shell's CEO, Wael Sawan, has explicitly stated that curtailing global oil and gas production would be "dangerous and irresponsible". Furthermore, Shell has come to realize that the energy transition is facing more significant challenges than initially anticipated, and the return on investment in terms of profit margins and shareholder payouts does not compare to the substantial gains derived from oil and gas operations.

Last year, Shell decided to exit two offshore wind power projects in Scotland, just days after announcing its withdrawal from the Atlantic Shores Offshore Wind project in the United States.