Shell Sells $715 Million Stake in Rhode Island Energy Facility to Constellation Energy
Energy giant Shell has agreed to sell a major electricity-generating facility, the Rhode Island State Energy Center (RISEC), for $715 million to U.S. utility company Constellation Energy. The deal is expected to close by early 2027 after regulatory approvals and includes an effective net cash outlay of $580 million due to tax benefits. RISEC, a natural gas-powered plant with combined-cycle technology, produces 609 megawatts of electricity and ranks as the top facility in Rhode Island. Constellation Energy emphasized that acquiring RISEC will enhance its New England operations by providing reliable power generation connected well within both electric grid and natural gas pipeline systems. The company expects this acquisition to be immediately profitable without affecting its $5 billion share repurchase target for 2027. Meanwhile, Shell is also expanding its energy portfolio through the purchase of Hunlock Creek Generation in Pennsylvania. Shell's subsidiary acquired two power plants with a combined capacity of 169 megawatts from Hunlock Creek to support supply and capacity needs within the Mid-Atlantic region managed by PJM Interconnection. The peaking plant component is particularly valuable for its ability to generate electricity quickly during high demand periods, contributing both through availability payments in the capacity market and production revenue.
Topics: Corporate Transactions Energy Natural Gas Power Plants