Savion Equity, LLC, a subsidiary of Shell plc, and a fund managed by the Ares Infrastructure Opportunities strategy, announced the formation of Tango Holdings, LLC, a joint venture that will manage 496 megawatts of Savion-developed solar projects in Ohio, Kentucky, Oklahoma and Indiana.
Savion is transferring majority ownership of five solar assets into this joint venture.
This transaction reflects Shell's strategy to selectively develop renewable generation projects and reduce ownership as they mature, enabling the company to build scale efficiently, improve capital returns, and maintain cost discipline. Shell plans to continue developing other onshore renewable power generation assets through Savion's development pipeline.
"The investment by Ares is a testament to Savion's success building and operating assets that deliver renewable power to key energy markets in the USA," Greg Joiner, Executive Vice President for Power at Shell, said. "Launching Tango with a strategic investment partner like Ares will allow us to maximize value of our power generation portfolio as we continue to build a more focused, competitive and adaptive business."
Tango is jointly owned by Ares (80%) and Savion (20%) with equity interests in the Martin County Solar Project, the Kiowa County Solar Project, and in three additional solar projects currently under construction. Savion will serve as the managing member with Shell Renewable Asset Management International overseeing asset management of the projects.
This deal is structured to simultaneously sign and close, with an immediate effective date.
