Dutch companies PGGM and Shell are exploring the possibility of participating in the controlled auction for the sustainable energy provider Eneco. Eneco and its shareholders’ committee announced the start of the company’s privatisation process in December 2018.
Photo: Eneco
Eneco has played a key role in transforming the Dutch energy system through investments in sustainability and renewable energy. PGGM and Shell would look to build on Eneco’s sustainable strategy and competitively grow the renewable energy products and services offer for millions of customers in north-west Europe.
Both PGGM and Shell say they understand Eneco’s unique position in taking on the challenges and opportunities of the energy transition. The consortium envisages that Eneco will be a platform for growth, operating from Rotterdam, with potential investments inside and outside of the Netherlands. Eneco could realise this as a separate entity, leveraging a strong identity, durable customer relations and a committed and experienced workforce within the company.
“The energy transition offers good opportunities for long-term investments in a more sustainable economy and we think Eneco can play a central role in realising the consortium’s shared ambitions. PGGM and Shell bring complementary experience and expertise across Eneco’s activities, which will support the delivery of affordable sustainable energy to a growing number of customers in North-West Europe,” says Frank Roeters van Lennep, Chief Investment Officer Private Markets PGGM.
Through its existing business and activities Shell offers access to clean-tech research and development, connected mobility and digital start-ups as well as a substantial number of partners and customers. “This provides opportunities along the entire energy value chain, from generation of renewable power to trading and delivery at home, on the road and at work,” says Shell’s Integrated Gas & New Energies Director Maarten Wetselaar. “Eneco’s business neatly fits with Shell’s New Energies activities and ambitions to continuously find new ways to reduce carbon emissions and provide more and cleaner energy. The consortium is committed to expand and develop business models that create both societal and commercial value.”
PGGM, a corporate Dutch pension service provider, says it sees sustainability as a cornerstone of its investment policy for Dutch pension capital, investing for the long term in the energy transition around the world.
Shell is increasing its role in the energy transition with increasing levels of investments in offshore wind, solar, e-mobility, and the power sector. Shell established its New Energies business to create business opportunities in the transition to a low-carbon future. Any potential investment should competitively fit within the company’s strategy and financial framework and stated capital investment guidance range of $25-30 billion per annum.
Eneco will be brought to the market via a controlled auction, subject to shareholder approval.
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