Oil giant Shell has sold off its European wind and solar energy business to French rival TotalEnergies in its latest retreat from green energy.

The sale included assets across the UK, Italy, the Netherlands and Spain, which together accounted for around 0.5 gigawatts of renewable energy capacity, as well as a pipeline of future projects.

The price was not disclosed, but the sale is another pivot from green energy as the group proceeds with plans to double down on oil and gas production. 

Under chief executive Wael Sawan, Shell has deprioritised low-carbon investments in favour of a more profitable fossil fuels business.

Last week, Shell reported it had more than doubled its earnings in the second quarter of the year, as it cashed in on ‘severe disruption’ in energy markets after the Iran war pushed up oil and gas prices.

Machteld de Haan, its president of downstream, renewables and energy solutions, said: ‘We are recycling capital and prioritising areas where we have differentiated capabilities and can create the most value over time, including through asset-backed power trading and customer-focused energy solutions.’

Shell shares rose 0.7 per cent, or 22p, to 3405.5p following the news.

The sale of the European green energy business comes after it offloaded its India-based renewable unit, Sprng Energy, in June, four years after buying it for $1.6billion.

Sawan said Shell would prioritise money-making assets, rather than the lower returns offered by wind and solar farms, alongside a cost-cutting drive which has focused on boosting investor returns rather than cutting carbon emissions.

It has also abandoned plans to develop offshore wind farms in Scotland.

Main British rival BP is also focusing on fossil fuel production and slimming operations down under new boss Meg O’Neill.

Last week, BP put its North Sea business up for sale, with O’Neill saying it would be ‘better positioned as part of another company’.