Shell linked to �2bn takeover of wind turbine firm: "The latest green company admitted to the London market yesterday, Econergy, saw its shares rise 11% within hours. A day earlier, another company, Ceramic Fuel Cells, announced plans to list its shares and raise cash for new factories, probably in the north of England.
Shell, which made �13bn of profits last year, is already involved in some alternative energy projects but has so far only spent a relatively paltry $1bn in a range of small projects in areas such as wind, biofuels and solar.
The Anglo-Dutch group is using Vestas to provide turbines for an offshore wind scheme in the Netherlands as part of plans to increase its wind energy capacity from 350 megawatts to 500MW by 2007.
Shell is also planning to construct a �1.5bn wind farm in the south-east of England and has hopes of building others as far afield as China. But a move to buy Vestas would underline its green energy credentials and show a determination to be at the heart of the wind business, seen by British politicians as the most promising of the new energy sources.
A Shell spokesman refused to give any guidance on whether it was interested or not in the Danish wind firm. 'We don't comment on market rumours,' he said.
Analysts said it would be a good time to buy Vestas, given that its share price was hit by a profit warning before Christmas. There has been previous speculation that industrial predators such as Siemens or GE might be tempted to make a takeover move.
Mainstream energy analysts such as Bruce Evers at Investec Securities would not rule out a move by Shell but believed the returns from alternative energy schemes would be unsatisfactory for traditional shareholders.
'Shell is having trouble replenishing its oil reserves without getting involved in a "