Shell acquires Nigeria’s Daystar to enter African renewable energy market
The acquisition of Nigeria-based Daystar Power by Shell is significant for the UK-headquartered oil giant, which has long been active in the continent’s hydrocarbons market, as it must look for new sources of growth as fossil fuels are phased out.
Shell has acquired Daystar Power, a Nigeria-based provider of hybrid solar power solutions to commercial and industrial businesses, as it launches its renewable power presence in Africa. The size of the deal, which is subject to regulatory approvals, has not been disclosed. “This deal marks our first power acquisition in Africa and a fundamental step for Shell in growing our presence in emerging power markets,”said Thomas Brostrøm, Shell’s executive vice-president for renewable generation. “We have had a long and established presence in West Africa and with Daystar Power, we are taking our first steps into the renewable power space.“
Daystar Power’s co-founders and management team will stay in place as the firm looks to further build its operations in West African markets, while expanding to East and Southern Africa. The firm says it aims to install its solar capacity of 400MW by 2025 in a bid to supply the growing energy needs of commercial and industrial businesses. The Nigeria-based company, launched in 2017, is currently present in four countries, runs over 300 power installations with an installed solar capacity of 32 MW, and has a team of 140 employees. It plans to further grow its client base in the financial services, manufacturing and agricultural sectors. Existing clients include Seven-Up Bottling Company, Ghandour Cosmetics and UAC Foods.