Shell and PGGM Eyeing Eneco

Energy major Shell and Dutch pension fund PGGM are jointly exploring the opportunity to participate in the controlled auction for the Dutch sustainable energy provider Eneco.

In December 2018 Eneco and its shareholders’ committee announced the start of the privatisation process.

The consortium envisages that Eneco will be a platform for growth, operating from Rotterdam, with potential investments inside and outside of the Netherlands. Eneco could realise this as a separate entity, the consortium said.

“The energy transition offers good opportunities for long-term investments in a more sustainable economy and we think Eneco can play a central role in realising the consortium’s shared ambitions,” said Frank Roeters van Lennep, Chief Investment Officer Private Markets PGGM.

Shell is amplifying its role in the energy transition with increasing levels of investments in offshore wind, solar, e-mobility, and the power sector. Shell established its New Energies business to create business opportunities in the transition to a low-carbon future. Any potential investment should competitively fit within the company’s strategy and financial framework and stated capital investment guidance range of USD 25-30 billion per annum.

“Eneco’s business neatly fits with Shell’s New Energies activities and ambitions to continuously find new ways to reduce carbon emissions and provide more and cleaner energy. The consortium is committed to expand and develop business models that create both societal and commercial value,”  said Shell’s Integrated Gas & New Energies Director Maarten Wetselaar.

The consortium partners understand that Eneco will be brought to the market via a controlled auction, subject to shareholder approval. PGGM and Shell realise this process is at an early stage and respect that it is up to the shareholders to determine the next steps in the sale process.

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