Shell and Sumitomo Buy 15 Percent Stake in Minigrid Firm PowerGen
Shell and Sumitomo have taken a minority stake in African minigrid firm PowerGen.
The pair will have a combined ownership of 15 percent after leading the most recent funding round alongside six other investors. Shell will get a seat on the board, with Sumitomo taking an observer seat. Financial details of the Series B round were not revealed.
PowerGen has connected around 15,000 homes and business via its minigrid installations in Kenya, Tanzania, Sierra Leone and Nigeria. It will use the new funds to build out its presence on the ground, but not for project finance.
Shell CEO Ben van Beurden has set a target for the company of providing reliable power to 100 million people who don’t already have it by 2030.