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Shell (RDS.A) to Buy 51% Share in Wind Farm Offshore Ireland

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Royal Dutch Shell Plc’s (RDS.A - Free Report) subsidiary recently entered into an agreement to purchase 51% interest in Simply Blue Energy's Emerald Project, a floating wind farm in the Celtic Sea off the south coast of Ireland. Post the completion of the deal, Simply Blue Energy will remain operator of the wind project.

The wind project with an initial installed capacity of 300 megawatt (MW) is in its preliminary stage and has the provision to expand to a total installed capacity of 1 gigawatt (GW). The first phase of the project will comprise 15-25 turbines based on the dimension of turbines chosen and the assembly, installation and deployment of these turbines are expected to create numerous high-grade jobs in the neighbouring supply chain. Further, future maintenance and long-term operations of this wind farm project will also generate employment opportunities for local skills and services at Cork Harbour for almost next 25 years.

Colin Crooks, VP, offshore wind at Shell believes that the company intends to establish an all-encompassing power business providing services through electricity generation, trading and supply.He further added that “this project could provide green power to consumers and businesses alike and contribute towards Shell’s ambition to be a net-zero emissions business by 2050, or sooner. Working alongside coastal communities to create shared value is key to success and this is why we have chosen and look forward to working with Simply Blue Energy who are rooted in the local community”.

With a viewto tap the growing popularity of pure energy resources and reduce the company’s carbon footprint, earlier this week, management announced that the company will purchase the entire stake in Ubitricity, one of the largest electric vehicle (EV) charger providers in the UK in terms of individual devices in operation.

The deal, which advances Shell’s objective to switch to lower carbon vehicles, is slated to close by this year-end and is contingent on certain regulatory conditions. Upon completion of the deal, Ubitricity will become a fully-owned unit of Shell.

About Shell

Shell belongs to a global group of energy and petrochemical companies. It is involved in all phases of the petroleum industry right from exploration to final processing and delivery. The company is scheduled to release fourth-quarter earnings results on Feb 4, 2021. The current Zacks Consensus Estimate is pegged at a loss of 17 cents per share for the to-be-reported quarter.

Zacks Rank & Key Picks

Shell currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are DCP Midstream Partners, LP (DCP - Free Report) , Plains Group Holdings, L.P. (PAGP - Free Report) and Matador Resources Company (MTDR - Free Report) , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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