Royal Dutch Shell is coming up with a home battery storage to boost an effective sustainable energy business.
Popularly known by the tag of giant player in the oil industry, on Friday, Royal Dutch Shell officially reported that it has purchased Sonnen, which is a German startup that designs residential battery systems that store natural energy generated from solar panels. This move consider Shell in direct competition with companies such as LG (LPL), Tesla (TSLA), and Samsung (SSNLF). These organization deals with a home battery system called the Powerwall.
However, Shell (RDSA) rejected to disclose the financial terms of the deal, but stated that the acquisition was part of a “New Energies” strategy focused on balancing energy consumption with the necessity to slash carbon emission.
According to the reports, the oil company has strategized to spend more than $2 billion annually on commercial projects within sustainable energy. It first invested in Sonnen in May, when it assisted in a $67 million of fundraising round.
"We're excited to help more households to become energy independent and benefit from new opportunities in the energy market," Sonnen CEO Christoph Ostermann plotted a statement.
Moreover, Sonnen also claimed that lithium batteries have a short period of lifespan of 10,000 charging-cycles which are capable of lasting 20 years.
Home energy systems is impressively winning the market as the demand is escalating the presence in areas that suffer from disruptions to their electric grid infrastructure.
The official reports states that Sonnen has successfully provided 30,000 battery systems since it was initiated in 2010. Most of the systems were sold in Germany, but they are also available in the U.S. and other developed markets.
Considering a geographical reference, in 5 years (2013-2018) Germany stands the world’s biggest market with 70,000 home batteries in place, followed by Australia with around 60,000.