Back to top

Image: Bigstock

Shell's (RDS.A) Offshore Wind JV Bids to Supply Clean Energy

Read MoreHide Full Article

Royal Dutch Shell Plc’s  joint-venture company, Atlantic Shores Offshore Wind, has put forward a proposition to the New Jersey Board of Public Utilities to offer the state nearly 2,300 megawatts (“MW”) of offshore wind energy.

Atlantic Shores is a partnership between Shell New Energies US LLC — a unit of Shell — and electric utility EDF Renewables North America, each holding a 50% stake in the company. The partnership was created in December 2018 to develop a 183,353-acre lease area, positioned within the New Jersey Wind Energy Area.

New Jersey intends to provide 100% of its energy from clean sources by 2050. In order to achieve this, the state is seeking several offshore wind energy projects of wind capacity between 1,200 MW and 2,400 MW as part of its second solicitation for a clean energy future.

Atlantic Shores expects to accomplish its first project by 2027. If confirmed, the major project might generate a 16% reduction in carbon dioxide emissions in the state through electricity generation by powering more than a million houses.

As part of the proposition, the wind firm developer plans to extend its services beyond offshore wind. Notably, it will utilize Shell’s and EDF’s technical expertise and combine with other entities to explore commercial pathways for battery storage. Further, Atlantic Shores intends to facilitate the development of a 5-10 MW green hydrogen pilot project to study the use of green hydrogen on the decarbonization of large industrial sectors.

Beside this, the developer aims to use the state’s New Jersey Wind Port for staging and marshaling as the port is built in the following years during which it will invest substantially in the construction stages to create several high paying jobs for the inhabitants to further expand New Jersey’s supply-chain offerings. It also announced several partnerships, with local universities, colleges and youth organizations.

Notably, Shell’s joint venture project is expected to create several job opportunities for the New Jersey residents and is expected to fulfill the state’s long-term goal of reducing greenhouse emissions by 80% from 2006 levels by 2050. Shell’s expertise will enable the JV to enhance further development of the lease area to maximize benefits for New Jersey and New York.

Company Profile & Price Performance

Shell is one of the primary oil majors — a group of U.S. and Europe-based big energy multinationals — with global operations. The company is fully integrated, as it participates in every aspect related to energy from oil production to refining and marketing.

The company’s shares have outperformed the industry in the past three months. Its shares have gained 35.8% compared with the industry’s 22.3% growth.

 

 

Zacks Rank & Stocks to Consider

Shell currently carries a Zack Rank #3 (Hold).

Some better-ranked players in the energy space are China Petroleum & Chemical Corporation  and DCP Midstream Partners, LP , eachsporting a Zacks Rank #1 (Strong Buy), and KLX Energy Services Holdings, Inc. (KLXE - Free Report) , carrying a Zacks Rank #2 (buy)at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, the Zacks Consensus Estimate for 2020 earnings for China Petroleum has been raised by 219.3%.

DCP Midstream is expected to see earnings growth of 202.4% in 2021, while KLX Energy Services is likely to see earnings growth of 71.7% next year.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in