Shell PLC (LSE:SHEL, NYSE:SHEL) is rumoured to be part of a three-horse race to purchase renewable energy assets in Spain.
Sources close to Reuters said Spanish utility company Naturgy and Austrian electricity firm Verbund are the other two interested parties.
The portfolio, valued at US$1.1bn and sold by fund manager Q-Energy mainly consists of solar projects near Guadalajara in central Spain and the southern coastal region of Andalucia.
Included among the assets is 75MW of solar capacity that guarantees core earnings of €60mln per year and a development project with the capacity to generate about 3.6GW of electricity once completed.
Should Shell be successful, it would add to the number of solar and renewable energy acquisitions made, with it this year winning a licence with Iberdrola’s Scottish Power to develop wind farms in the North sea.
Binding bids are due by the end of April, according to Reuters’ sources.