Shell Sells $715 Million Stake in Rhode Island Power Plant to Constellation Energy
Energy giant Shell has agreed to sell a subsidiary that owns the Rhode Island State Energy Center (RISEC), one of New England's largest electricity-generating facilities, to utility company Constellation Energy for $715 million. The deal is expected to close in early 2027 after regulatory approval and includes an effective net cash outlay of $580 million due to tax benefits. RISEC has a capacity of 609 megawatts and uses efficient combined-cycle technology, making it more environmentally friendly than traditional natural gas plants. Constellation Energy's CEO emphasized the strategic value of acquiring RISEC for its New England expansion plans, noting that the facility is well-positioned on both the electric grid and natural gas pipeline system. The company expects this acquisition to be immediately profitable without affecting its $5 billion share repurchase target by 2027. Meanwhile, Shell has also acquired two Pennsylvania power plants through a separate deal with Hunlock Creek Generation for supply security in the Mid-Atlantic region.
Topics: Corporate Acquisitions Energy Natural Gas Power Plants