Shell, Ares Launch Tango Holdings for US Solar Expansion

• Shell and Ares unite for a 496 MW solar venture, powering decarbonization with strategic PPAs and exploring battery storage for enhanced returns.

Shell's Savion LLC and Ares Management have formed a joint venture, Tango Holdings LLC, to manage five utility-scale solar projects totaling 496 MW across Ohio, Kentucky, Oklahoma, and Indiana. Ares’ Infrastructure Opportunities fund will hold an 80% stake, while Shell retains 20% through Savion and will provide energy-marketing services. The projects, expected online between mid-2026 and early 2027, will supply power through long-term corporate PPAs and merchant exposure, catering to data-center operators and manufacturers aiming to decarbonize operations.

The partnership allows Shell to focus on asset-light ownership in US renewables, recycling capital into global hydrogen and EV-charging ventures while maintaining offtake volumes for trading. Ares benefits from a turnkey pipeline with secured permitting and interconnection, crucial amid greenfield project delays. The JV plans to explore battery storage at select sites, potentially enhancing project returns. Savion CEO Nick Biumenfeld indicated potential expansion beyond the initial projects, aligning with industry trends of combining developer expertise with institutional capital for long-term, inflation-linked yields.

How will Tango Holdings LLC impact the US renewable energy landscape and Shell's strategy?

Impact on US Renewable Energy Landscape:

• Accelerates the deployment of utility-scale solar projects in the Midwest, contributing to regional renewable energy capacity.
• Supports the decarbonization goals of data-center operators and manufacturers by providing clean energy through long-term PPAs.
• Enhances grid reliability and energy diversity in Ohio, Kentucky, Oklahoma, and Indiana.
• Potentially increases local job creation and economic development through construction and operation of solar facilities.
• Encourages further investment in renewable energy infrastructure by demonstrating successful collaboration between major energy companies and financial institutions.

Impact on Shell's Strategy:

• Aligns with Shell's strategy to transition towards a low-carbon energy future by focusing on asset-light ownership models.
• Allows Shell to recycle capital into other strategic areas such as global hydrogen and EV-charging ventures.
• Maintains Shell's presence in the US renewable energy market through energy-marketing services and offtake agreements.
• Provides Shell with a platform to explore and potentially integrate battery storage solutions, enhancing energy storage capabilities.
• Strengthens Shell's ability to offer comprehensive energy solutions to corporate clients seeking to reduce carbon footprints.