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Shell (SHEL) Finances Gulf Wind Technology for Offshore Hub

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Shell plc’s (SHEL - Free Report) division, Shell New Energies US LLC, is collaborating with Gulf Wind Technology to build a research, training and technology demonstration program at GWT's Avondale Global Gateway facility in New Orleans, the former site of the Avondale Shipyard. The collaboration is aimed at promoting offshore wind energy technology and increasing the skilled workforce in the emerging sector.

In order to create the Shell Gulf Wind Technology Accelerator program, Gulf Wind Technologies received a $10 million grant from Shell. This will help in generating 30 new direct jobs with an average annual salary of $83,000. According to Louisiana Economic Development, the project will generate another 54 indirect jobs, for a total of 84 new jobs.

As part of the deal, cutting-edge technology will be used for a demonstrator turbine as early as 2024. The idea is to develop, test and implement the first set of technical solutions, specifically tailored to the Gulf of Mexico wind industry.

According to James Martin, GWT’s CEO, the east coast, where most of the U.S. offshore wind development work is currently underway, has more stable wind resources than the Gulf area. Amanda Dasch, vice president of Shell Offshore Power America, said that Shell has been active in the Gulf of Mexico for more than 60 years and has a track record of developing energy projects, including advancing and proving deep-water technologies. She added that the company is proud to support Louisiana's 5GW offshore wind target by 2035.

Zacks Rank & Key Picks

Currently, Shell carries a Zack Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks for investors interested in the energy sector are CVR Energy (CVI - Free Report) and Valero Energy Corporation (VLO - Free Report) , each sporting a Zacks Rank #1, and Murphy USA Inc. (MUSA - Free Report) , carrying a Zacks Rank #2 (Buy).

CVR Energy, a diversified holding company with its main office in Sugar Land, TX, is an independent refiner and marketer of high value transportation fuels. Over the past seven days, CVI has seen an upward revision in earnings estimates for 2023 and 2024.

Valero Energy is a global manufacturer and marketer of transportation fuels and petrochemical products. With 15 refineries spread across Canada, the United States and the United Kingdom, it has a daily refining capacity of 3.1 million barrels. Over the past 30 days, VLO has seen an upward revision in earnings estimates for 2023 and 2024.

Murphy USA operates stations close to Walmart supercenters and sells low-cost, high-volume fuel. This helps the company to get a lot more business than its competitors. Another significant competitive advantage for the firm is its access to product distribution centers and pipelines, which helps control costs in the intensely competitive retail sector. Over the past 30 days, MUSA has witnessed an upward revision in earnings estimates for 2024.

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