Royal Dutch Shell Plc Class B (LON: RDSB) have moved to purchase French wind farm specialist EOLFI as part of its plans to expand into the oil major’s electricity business.

EOLFI have focused largely on solar and wind energy operations, including a specialism in offshore wind farms.

Offshore wind is one of the fastest growing renewables markets, with floating structures the technology’s next frontier as they utilise waters that are too deep for traditional turbines.

The FTSE100 (INDEXFTSE: UKX) listed firm, generate most of their revenue from Oil and Gas, however last week they reported a slump in profits in their third quarter update.

This fall in profits came as no surprise as the global price of oil had dropped due to economic and political events.

Shell was not the only oil giant to report falling profits after SABIC (TADAWUL: 2010) reported an impairment loss of $400 million, and Total SA (LON: TTA) profits fell 15% in the same period.

Shell have big aims to diversify out of oil and gas into renewable energy, and this move is a bold statement to competitors.

Shell want to become the world’s largest electricity company and expects to invest £1.6 billion to $3 billion a year — nearly 10% of its overall spending — on its power division by 2025.

“We believe the union of EOLFI’s expertise and portfolio with Shell’s resources and ability to scale up will help make electricity a significant business for Shell,” Offshore Wind Shell vice president Dorine Bosman said in a statement.

The financial details of the deal are yet to be formalized and released, however initial negotiations have commenced. Further details of the deal are expected to be released at the start of December.

EOLFI is part of a group developing a pilot project off the coast of Brittany, France.

The deal looks like a potential dime for Shell, as EOLFI have operations in renewable energy.

If the acquisition formulates Shell could benefit from expertise and diversification into a new sector.

Shares of Shell are trading at 2,329p having spiked 1.17% after this news hit headlines. 5/11/19 14:21BST