Shell Energy Australia
| Company type | Subsidiary |
|---|---|
| Industry | Energy |
| Founded | 1980 |
| Founder | Trevor St Baker |
| Headquarters | Brisbane , Australia |
Area served | Australia (excluding Northern Territory) |
| Products | Electricity, gas, environmental solutions, energy efficiency services |
| Owner | Shell plc |
Shell Energy Australia provides commercial and industrial customers with electricity, gas, environmental solutions, and energy efficiency services.
History
Established in 1980 by Trevor St Baker as an Australian consultancy specializing in energy advisory, ERM Power transitioned during the mid-1990s toward power generation to capitalize on deregulation within Australia's electricity market. The company broadened its operations to include electricity retailing in 2007 amid the sector's privatisation and vertical integration trends. ERM Power became publicly traded on the Australian Securities Exchange on 10 December 2010. The ERM Business Energy brand was introduced in 2012, followed by entry into the small and medium enterprise (SME) segment in 2013. In 2015, ERM Power expanded internationally by acquiring Texas-based Source Power & Gas, entering the U.S. retail electricity market.
In November 2019, Shell Australia completed the acquisition of ERM Power for $617 million, resulting in its removal from the ASX. The business adopted the Shell Energy name in February 2021 to align with Shell’s overarching strategy for energy transition.
Core business
Shell Energy supplies electricity to major commercial and industrial clients throughout Australia, excluding the Northern Territory, while providing gas services to commercial and industrial customers in New South Wales and Victoria. The company owns gas-fired peaking power plants located in Darling Downs, Queensland, and Neerabup, Western Australia, and is progressing a 120-megawatt solar energy project within Queensland.
In February 2022, Shell Energy entered the residential electricity market through its acquisition of Powershop Australia, thereby expanding its presence in Australia’s retail electricity sector.
Projects in development
Shell Energy is actively developing multiple renewable energy and storage initiatives:
- Gangarri Solar Development: This inland Queensland solar farm will feature around 330,000 photovoltaic panels with a capacity of 120MW, anticipated to supply power for approximately 50,000 households while cutting carbon emissions by roughly 300,000 tonnes each year.
- Wallerawang Battery Energy Storage System: In January 2023, Shell secured development rights for a battery storage project rated at 500MW/1000MWh on the former Wallerawang Power Station site near Lithgow, NSW.
- In October 2022, Shell obtained $9.1 million funding from the Australian Renewable Energy Agency (ARENA) to deploy load control technology across at least 40 commercial and industrial locations, showcasing flexible demand management capabilities.
- Shell has partnered with AMPYR Australia to develop a large-scale battery storage facility of 500MW/1000MWh capacity in Wellington, NSW—one of the state’s most significant energy storage projects.
- Through a 50/50 joint venture with Foresight Group, Shell acquired Kondinin Energy, marking its initial renewables development venture in Western Australia. This project encompasses wind, solar, and battery storage assets totaling 370MW approximately 245 km east of Perth.
- In May 2021, Shell Energy collaborated with Edify Energy to secure a decade-long contract with the New South Wales Government for a combined retail supply and battery storage system: a 60MW/120MWh retail supply paired with a 100MW Battery Energy Storage System (BESS), named Riverina Energy Storage System (RESS). This initiative supports regional energy demands ahead of Liddell Power Station’s scheduled closure in 2023 and will be co-located with Edify’s 333MW Darlington Point Solar Farm.
Generation
Shell Energy manages the Oakey Power Station in Queensland, which has a capacity of 332 megawatts, as well as the Neerabup Power Station in Western Australia, boasting 330 megawatts. The Neerabup facility commenced operations in 2009 with an investment of $435 million.
Net-zero ambitions
Shell is committed to transforming into a net zero emissions energy provider by 2050, in accordance with the objectives set by the UN Paris Agreement on climate change. To advance this target, ERM Power obtained $600,000 in funding—comprising $250,000 from the Australian Renewable Energy Agency (ARENA)—to support Queensland's manufacturing sector in adopting clean energy solutions. In October 2022, Shell Energy received a $9.1 million grant from ARENA for the $31.6 million ‘Commercialising Smart Energy Hubs’ initiative. This project aims to introduce load management across a minimum of 40 commercial and industrial locations throughout Queensland, New South Wales, and Victoria, showcasing an anticipated flexible demand capacity of approximately 21.5 MW.