Shell Buys Hunlock and Sells RISEC to Constellation for $715 Million

Shell Energy North America (US), L.P. (SENA), a subsidiary of Shell plc, has signed two transactions as part of the ongoing management of its US power portfolio: the acquisition of 100% equity in Hunlock Creek Generating LLC, which owns 169 megawatts (MW) of natural gas-fired generation capacity in Pennsylvania, and the sale of its interests in RISEC Holdings, LLC to Constellation Energy (CEG ) Generation, LLC for $715 million, the company announced on September 10, 2026.

RISEC owns a 609-MW, two-unit combined cycle gas turbine power plant that serves the New England power market. Both transactions are subject to regulatory approvals and are expected to close in the first quarter of 2027.

“These transactions reflect our dynamic approach to managing our trading portfolio,” said Andrew Smith, Shell’s President of Trading & Supply. “We selectively invest in assets that strengthen our market position and create value, while remaining ready to realize value when market conditions present attractive opportunities.”

Hunlock Creek Acquisition

The Hunlock acquisition secures supply and capacity offtake for SENA in the Mid-Atlantic power grid operated by PJM Interconnection, which Shell describes as the largest wholesale electricity market and grid operator in the USA. According to the company, the asset further strengthens SENA’s position in the PJM market through access to flexible gas-fired generation and reinforces Shell’s continued focus on investing in assets that complement its trading capabilities.

Hunlock’s portfolio includes a two-unit, 125-MW combined-cycle power plant and a 44-MW simple-cycle peaking plant. Hunlock is currently owned by Riverview Power Holdings LLC, an indirect subsidiary of Castleton Commodities International LLC. PJM Interconnection manages the movement of electricity across 13 US states and the District of Columbia, serving more than 65 million people.

Shell projects the Hunlock acquisition will generate returns that exceed its investment requirements for its power business, as outlined at Shell’s Capital Markets Day in 2025.

RISEC Sale to Constellation

Constellation announced its agreement on September 10, 2026 to acquire 100% of RISEC Holdings, owner of the Rhode Island State Energy Center, from SENA for $715 million, subject to customary purchase price adjustments.

Located in Johnston, Rhode Island, the Rhode Island State Energy Center is a natural gas-fueled combined-cycle electric generation facility with two combustion turbines and one steam turbine, capable of generating up to 609 megawatts of electricity. The facility sells electricity and capacity into the competitive ISO New England wholesale power market and is expected to become part of Constellation’s merchant generation portfolio. RISEC has served the New England power grid since 2002. Constellation describes the plant’s combined-cycle technology as capturing and reusing heat from the gas turbines to generate additional electricity, allowing it to operate more efficiently and with lower emissions than a traditional single-cycle natural gas plant.

Constellation stated that the $715 million purchase price is equivalent to approximately $580 million net of expected first-year tax benefits. The company expects the transaction to be immediately accretive to its operating earnings and to deliver returns above its 10% unlevered return threshold, and said the transaction will not impact its ability to execute $5 billion of authorized share repurchases by the end of 2027.

“The Rhode Island State Energy Center is a high-performing asset that perfectly complements Constellation’s extraordinarily successful customer business in New England,” said Joe Dominguez, chairman, president and chief executive officer of Constellation.

Shell said SENA’s earlier acquisition of RISEC ensured continued access to the plant’s capacity and associated trading opportunities in the market, enabling SENA to deliver substantial value as part of its asset-backed trading portfolio. Through the sale, SENA will bring forward the return it expected to generate from longer-term ownership by realizing what Shell described as a significant gain. SENA has maintained an energy conversion agreement with RISEC for the plant’s full electricity output since 2019, an arrangement that will terminate upon completion of the transaction.

Shell describes SENA as a full-service energy company providing solutions to commercial and industrial customers across wholesale and retail power, natural gas and environmental products markets. Headquartered in Houston, Texas, with regional hubs across North America, SENA has been active in energy markets for more than 25 years and owns gas-fired generation in some of the largest power markets in the United States. According to Shell, SENA’s focus is on power markets where it can play to its strengths, including trading and optimization, backed by increased access to battery energy storage systems and flexible power plants.

The Constellation transaction is expected to close following receipt of customary regulatory approvals and satisfaction of other closing conditions. Until closing, RISEC will continue to operate under its current ownership. Day Pitney LLP is serving as lead transaction counsel to Constellation.