Shell’s renewable energy division has announced its acquisition of the Lagos-based off-grid services provider for an undisclosed amount, marking its first acquisition of an African power firm.
Founded in 2017 by African venture builder Sunray Ventures, Daystar Power has raised $97m to date through several rounds of equity and debt financing – the most recent being a $20m loan from the International Finance Corporation in July 2021. Daystar Power is a provider to commercial and industrial (C&I) businesses across Ghana, Nigeria, Senegal and Togo, but plans to expand beyond to East and South Africa. The firm aims to increase its installed solar capacity from 32MW to 400MW by 2025, whilst for Shell it is growing its presence in emerging power markets by targeting renewables expansion across African regions.
The CEO, Jasper Graf von Hardenberg, and management team will continue to run the company pending regulatory approvals – “For the next stage – really becoming a pan-Africa power provider – it requires an investor with the same vision. Someone really with sufficient firepower to finance this growth,” he told Reuters.
Shell previously acquired Sprng Energy Group in India in August 2022 for $1.55bn. Sprng Energy, a renewable energy platform, was established in 2017 by Actis, a leading global investor in sustainable infrastructure.
These acquisitions will help deliver Shell’s Powering progress strategy and develop an integrated power business to accelerate the transition of the business to net-zero emissions by 2050.
Analyst: Audrey Lim
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