PGGM, a cooperative Dutch pension fund service provider, and Shell have joined forces to explore the opportunity to participate in the controlled auction for the sustainable energy provider Eneco. In December 2018, Eneco and its shareholders committee announced the start of the privatization process.

With their roots in Dutch society, both PGGM and Shell understand Eneco’s unique position in taking on the challenges and opportunities of the energy transition. The consortium envisions that Eneco will be a platform for growth, operating from Rotterdam, with potential investments inside and outside of the Netherlands.

PGGM sees sustainability as a cornerstone of its investment policy for Dutch pension capital, investing for the long term in the energy transition around the world. Eneco would greatly add to PGGM’s growing global portfolio of sustainable investments, which provide concrete climate solutions (currently valued at more than $8 billion), lower the carbon footprint of pension capital and offer a unique chance to invest directly in the Dutch economy.

Shell is amplifying its role in the energy transition with increasing levels of investments in offshore wind, solar, e-mobility and the power sector. Shell established its New Energies business to create business opportunities in the transition to a low-carbon future.

The companies say that any potential investment should competitively fit within Shell’s strategy and financial framework and stated capital investment guidance range of $25-30 billion per year, and that both PGGM and Shell realize this process is at an early stage and respect that it is up to the shareholders to determine the next steps in the sale process. The consortium has shared an open letter further outlining its intent. —Shell International BV