Shells Sells Its 50% Stake in SouthCoast Wind Energy

Shell has divested its 50% ownership in SouthCoast Wind Energy, a venture aimed at developing wind energy projects off the Massachusetts coast, transferring its shares to its partner in the venture, Ocean Winds.

Located approximately 30 miles south of Martha’s Vineyard and 23 miles from Nantucket, SouthCoast Wind is in the process of establishing an offshore wind farm with a potential output of 2.4 GW.

Initially known as Mayflower Wind Energy, the venture was a collaboration formed in 2018 between Shell and Ocean Winds, itself a partnership between Engie of France and Portugal's EDP.

Shell announced that the divestment was effective immediately, though the financial specifics of the transaction were not made public.

The year 2023 saw delays in offshore wind farm development, attributed to higher borrowing costs, logistical challenges in the supply chain, and escalating inflation. The Danish offshore wind leader Ørsted paused work on two American projects, and both Equinor and BP ceased their agreement to supply Empire Wind 2 power to New York State, subsequently diverging on their offshore wind initiatives in the US.