Shell has agreed to sell its European onshore renewables business to TotalEnergies.
The FTSE 100 energy giant said the deal will include assets in the UK, Italy, the Netherlands and Spain.
It comes as the group continues to push ahead with a strategy under boss Wael Sawan which has seen Shell scale back its investment in low-carbon and renewable energy.
The deal is subject to regulatory approvals and expected to complete by the end of the year.
TotalEnergies will take over a four gigawatt renewables portfolio, including 500 megawatts of solar and wind assets in operation and under construction.
The portfolio includes a pipeline of solar, wind and battery storage projects in Italy, the UK and Spain.
Machteld de Haan, president for downstream, renewables and energy solutions at Shell, said: “This agreement reflects Shell’s continued focus on actively managing and high-grading its power portfolio in line with the strategy set out at capital markets day 2025.
“We are recycling capital and prioritising areas where we have differentiated capabilities and can create the most value over time, including through asset-backed power trading and customer-focused energy solutions.”
Stephane Michel, president for gas, renewables and power at TotalEnergies, said it “strengthens our power generation positions in selected key deregulated markets across Europe and supports the implementation of our integrated strategy across the electricity value chain”.
Shell’s move to reduce its exposure of the UK energy sector comes only days after rival BP said it was putting its UK North Sea business up for sale after 60 years of production.