Shell is preparing for a further withdrawal from offshore wind power. The energy company plans to sell stakes in wind farms for more than one billion dollars. According to Bloomberg, the transaction is expected to launch in 2027. The company has reportedly engaged Rothschild and PJT Partners as advisors; however, Shell has not yet confirmed the report. It also remains unclear how many wind farms are included in the sale package. High financing costs, rising project prices, and weak returns are weighing on the business. Consequently, Shell is directing more capital toward LNG, oil, gas, and energy trading.
Withdrawal from wind power projects has been underway for years
The planned sale continues a long series of project divestments. Since 2024, Shell has already offloaded stakes in at least five major offshore ventures. However, these projects are not automatically part of the sale package currently being reported. Consequently, the exact number of wind farms on offer cannot be stated at this time.
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Notable exits include the SouthCoast Wind project off the coast of Massachusetts. Shell sold its 50 percent stake to Ocean Winds in March 2024; the planned project was intended to generate around 2,400 megawatts. Shell also divested its interest in the South Korean MunmuBaram project—where it previously held an 80 percent stake—to Hexicon. That venture was planned as a floating offshore wind farm.
Atlantic Shores Resulted in Significant Write-Downs
The Atlantic Shores project off the coast of New Jersey proved particularly costly. Shell recorded a write-down of approximately one billion dollars in early 2025. According to the company, the project failed to meet internal return and strategic targets. Shell subsequently transferred its stake to its existing partner, EDF. This withdrawal significantly reduced the company’s financial exposure to the US offshore market.
The energy company also ended its involvement in two major projects in Scotland. ScottishPower acquired Shell’s stake in the MarramWind floating wind farm in late 2025; the project has a potential capacity of up to three gigawatts. Additionally, Shell returned the rights for CampionWind to Crown Estate Scotland. That project was planned with a capacity of up to two gigawatts, though its future use remains undecided.
Shell Shifts Capital to LNG and Production
Shell CEO Wael Sawan is demanding higher returns and stricter capital discipline. Consequently, the group is focusing more heavily on liquefied natural gas (LNG) and oil and gas production. Shell aims to increase its LNG sales by four to five percent annually through 2030. In addition, the upstream business is projected to grow by an average of one percent per year over the same period. The sale of stakes in wind farms is generating additional capital for these efforts.
However, the energy group’s withdrawal does not necessarily spell the end for all the affected wind farms. Energy utilities, project developers, or infrastructure funds could take over the stakes. For instance, the MarramWind project will continue to be developed under the sole leadership of ScottishPower. Nevertheless, the offshore wind industry is losing a financially strong investor in Shell. Other companies will therefore have to shoulder a larger share of the capital requirements or seek new partners. Stable remuneration and robust financing models are likely to remain crucial for future projects.
Author: Blackout News
Sources: tkp (18.06.26) – Bloomberg (12.06.26) – Reuters (12.06.26) – Electrec (12.06.26) – Benzinga (15.06.26)