Shell to Annually Invest $5-6 Billion in Renewables, Low-Carbon Fuels & EV Charging
The company confirms its carbon emissions peaked in 2018, and oil production in 2019
Global energy conglomerate, Royal Dutch Shell, has said it will invest $5-6 billion annually in its Growth Pillar, including $2-3 billion in renewables and energy solutions, to accelerate its transformation into a net-zero emissions energy products and services provider.
Shell has also confirmed that its total carbon emissions peaked in 2018 and oil production in 2019.
Under the “Growth Pillar”, it will invest $3 billion in marketing, including the growth of its global electric vehicle (EV) network from more than 60,000 charge points currently to around 500,000 by 2025. It also aims to increase the production of low-carbon fuels like biofuel and bioethanol.
Under ‘Integrated Power,’ the company aims to sell around 560 TWh of renewable energy in a year by 2030, which is twice the electricity Shell currently sells. The company expects to serve more than 15 million retail and business customers worldwide to become the leading clean power provider.
The company is working on ‘nature-based’ solutions. It expects to invest around $100 million a year in high-quality, independently verified projects on the ground to build a significant and profitable business to help customers meet their net-zero emissions targets.
Shell is also working on hydrogen by developing integrated hydrogen hubs to serve industry and heavy-duty transport, to achieve a double-digit share of global clean hydrogen sales.
“Our accelerated strategy will drive down carbon emissions and will deliver value for our shareholders, our customers, and wider society,” said Royal Dutch Shell Chief Executive Officer Ben van Beurden.
He added, “We must give our customers the products and services they want and need – products that have the lowest environmental impact. At the same time, we will use our established strengths to build on our competitive portfolio as we transition to be a net-zero emissions business in step with society.”
Shell is part of Climate Action 100+, an investor-led initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change.
Meanwhile, a joint venture between Shell and Eneco will operate an offshore wind project- The Amazon-Shell HKN Offshore Wind Project- which will enable Amazon to power more of its business with clean energy. Starting in 2024, Amazon will offtake 250 MW from Shell and 130 MW from Eneco, for a total of 380 MW.
Similarly, Shell has teamed up with Daimler Truck AG, IVECO, OMV, and the Volvo Group to help create the conditions for the mass-market roll-out of hydrogen trucks in Europe. The decade-long scale-up is expected to begin with groups of customers willing to make an early commitment to hydrogen-based trucking.
Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. More articles from Rahul Nair.