Shell is selling its European onshore renewable energy operations, including wind and solar assets, to French energy firm TotalEnergies.
The transaction covers active, under-development, and future projects across the Netherlands, Italy, Spain, and the United Kingdom.
Neither company has disclosed the financial details of the sale.
Shift toward fossil fuels
Under Chief Executive Officer Wael Sawan, the company has pivoted its corporate strategy back toward fossil fuel production while scaling down investments in renewable power generation.
The divestment follows similar decisions over the past year, including the sale of its stakes in two offshore wind developments in Scotland.
The energy company also recently completed the sale of Sprng Energy, an Indian solar and wind power producer.
Portfolio adjustments and earnings
Management stated that it continues to actively adjust its overall portfolio to direct capital toward areas that generate the strongest long-term financial returns.
The company recently reported higher quarterly earnings, driven by an increase in crude prices linked to conflict in the Middle East.
The onshore operations being transferred account for 0.5 gigawatts of renewable generation capacity.
According to figures provided with the sale, one gigawatt of capacity provides enough power for roughly one million households.
Parallel transactions in Europe
As part of a separate transaction announced on Monday, TotalEnergies is selling a 50 percent stake in a different portfolio of European wind and solar assets to American investment firm KKR.
The moves highlight broader shifts across European energy companies as they rebalance their asset portfolios between fossil fuel operations and renewable infrastructure.
