Royal Dutch Shell RDS.A recently won a 10-year AU $ 3.2 billion power supply contract with the Australian state of New South Wales (NSW), which includes the supply of a back-up battery for wind and solar power.

Company officials have informed that the battery, which will be developed by private partner Edify Energy and will be operational in early 2023, will alleviate concerns about power supply issues expected to result from the shutdown of the Liddell plant. coal-fired from AGL Energy. station after two years. The news comes days after the federal government announced plans to build an A $ 600 million taxpayer-funded gas plant in New South Wales.

According to NSW State Energy Minister Matt Kean, this battery will help keep lights on and prices under control during peak hours. In addition, it will motivate further deployment of renewable energy. He pointed out that the battery will be erected next to the Darlington Point Solar Farm, one of the largest solar power plants connected to the national grid.

Shell, through its subsidiary Shell Energy, the former ERM Power company that the oil major bought in 2019, won the contract to serve the state government, which is the second largest user of electricity in NSW.

Shell has agreed to accept 60% of the battery power as part of an agreement with Edify Energy. Management is delighted to have the latter as the company’s battery energy storage partner in its joint effort to meet the NSW administration’s needs for an innovative power solution.

Unit CEO Greg Joiner, in commenting on the project, said: “Shell Energy recognizes that batteries have an important role to play in transitioning and managing risk in a low carbon energy future. . This long-term service agreement is a model for how large energy users can access distributable power like battery storage, which complements renewables, while contributing to a cleaner and more resilient power system. . “

About Shell

This integrated energy player belongs to a global group of energy and petrochemical companies. It is involved in all phases of the petroleum industry, from exploration to final processing and delivery. The company recently released first quarter 2021 results, in which net income was 3.8% above Zacks’ consensus estimate.

Zacks rank and key selections

Shell currently has Zacks Rank # 3 (Hold). Some better ranked players in the energy space are SilverBow Resources Inc. SBOW, Matador Resources Company MTDR and Continental Resources, Inc. CLR, each currently displaying a Zacks # 1 rank (strong buy). You can see The full list of current Zacks # 1 Rank stocks here.

Zacks names “Best Single Pick to Double”

Among thousands of stocks, 5 Zacks experts each chose their favorite to skyrocket + 100% or more in the coming months. Of these 5, Research Director SherazMian chooses one to have the most explosive advantage of all.

You’ve known this company from its past glory days, but few people expect it to be ready for a monster turnaround. Fresh from a successful repositioning and flush with A-List celebrity endorsements, it could rival or surpass other recent Zacks stocks that are expected to double as Boston Beer Company which climbed + 143.0% in just a bit. more than 9 months and Nvidia which exploded by + 175.9% in one year.

Free: see our best stocks and 4 finalists >>

Click to get this free report

Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report

Continental Resources, Inc. (CLR): Free Stock Analysis Report

Matador Resources Company (MTDR): Free Stock Analysis Report

SilverBow Resources Inc. (SBOW): Free Stock Analysis Report

To read this article on Zacks.com, click here.

Zacks investment research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.