Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Denver news in your inbox
Catch up on the most important stories affecting your hometown with Axios Denver
Des Moines news in your inbox
Catch up on the most important stories affecting your hometown with Axios Des Moines
Minneapolis-St. Paul news in your inbox
Catch up on the most important stories affecting your hometown with Axios Twin Cities
Tampa Bay news in your inbox
Catch up on the most important stories affecting your hometown with Axios Tampa Bay
Charlotte news in your inbox
Catch up on the most important stories affecting your hometown with Axios Charlotte
Photo: Osama Faisal/SOPA Images/LightRocket via Getty Images
Royal Dutch Shell announced two new renewables deals on Wednesday, the latest sign that oil-and-gas behemoths — especially the European-based majors — are increasingly moving into the zero-carbon power space.
The big picture: It comes on the heels of a separate Shell-backed joint venture — this one with Portugal's EDP — submitting a $135 million winning bid Friday for a wind energy tract in federal waters off Massachusetts.
Driving the news: Shell unveiled a joint venture with EDF Renewables North America, an arm of France-based global power giant EDF Group, to develop a wind energy lease off New Jersey's coast.
- Separately, Shell said it has acquired a 49% stake in Cleantech Solar, a Singapore-based developer with projects in southeast Asia and India. The costs were not disclosed.
Plus, on the solar front, early this year Shell said it's spending $217 million to acquire a 44% stake in the U.S. solar power developer and operator Silicon Ranch.
- Shell has also been moving into EV charging and other power initiatives beyond its core oil-and-gas business.
But, but, but: Big Oil's clean energy investments remain a very small part of their portfolios.
The bottom line: For perspective, the amount oil majors as a group have spent on renewables since 2016 represents less than 3% of their exploration and production spending, according to Wood Mackenzie.
The consultancy said in a note this week that they expect renewables spending to grow just slightly in 2019.
- "Companies and investors will be wary of backing the wrong horse in new energy. It’s a sector they are still trying to understand," said WoodMac analyst Tom Ellacott.