Biomass

Published on May 18th, 2016 | by Joshua S Hill

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Shell Creates New Energies Division To Invest In Renewables & Low-Carbon Power

May 18th, 2016 by  

Royal Dutch Shell is reported to have created a new division which will focus solely on investing in renewable and low-carbon energies.

6280287836_2ccdb72913_zAccording to reports in the news, and a new report published by Shell, the oil and gas company will bring together its existing hydrogen, biofuels, and electrical activities, and will go further, using it as a base by which the company can begin stepping into the wind industry sector.

Shell published a new report, Shell: Energy transitions and portfolio resilience, which addresses an oft-raised question, “how is the company positioned for the changes that are to come” in a low-carbon future. Shell’s CEO, Ben van Beuden, in his introduction to the report, highlighted Shell’s “track record of successfully adapting our business model, and delivering profitable growth, over more than 100 years.” Van Beuden added that his company’s assessment of the current energy climate is that “there will continue to be commercial opportunities for Shell in oil and gas for decades to come, providing a foundation to position the company successfully for the energy transition to a lower-carbon system.”

Shell’s New Energies division “is actively exploring opportunities where commercial value is clear.” The new division covers a variety of different avenues, including “new fuels for mobility, such as biofuels and hydrogen; integrated energy solutions, that combine, for example wind and solar energy; and connecting customers with new business models for energy, enabled by digitalisation, and the decentralisation of energy systems.”

Shell already has $1.7 billion attached to its new energies endeavors, and is currently spending approximately $200 million annually to explore and develop the above avenues. Specifically, Shell is focusing on biofuels, hydrogen, wind, and solar.

Image Credit: Shell, via Flickr


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About the Author

I'm a Christian, a nerd, a geek, and I believe that we're pretty quickly directing planet-Earth into hell in a handbasket! I also write for Fantasy Book Review (.co.uk), and can be found writing articles for a variety of other sites. Check me out at about.me for more.



  • Brent Jatko

    Maybe this the real “beyond petroleum” that BP promised us back in the day?

    I kind of doubt it.

  • JamesWimberley

    “Look into everything” is not a strategy.

    • Adrian

      Depends what your aim is. If it’s to greenwash while milking the current business for as long as possible, then it’s quite valid. 😉

  • ADW

    Shell’s current profit margin is 0.97%, up from (-10)% last quarter, in the last 5 years their high has been in the 6% range. Not sure ‘greedy’ is the word. The money they make is large because the size of the company is so large, volume and scale.

    Vesta’s ran closer to 17% gross profit last year. Do we call them greedy? If they lowered their profit margins to 0.97% could not the world afford more turbines which leads to clearer air?

    First Solar is running at a 30% margin right now, given all the effort to lower the cost of PV, can we agree the greed of this firm is slowing down the expansion of clearer electricity?

    If solar and wind was cheaper there would be a lower need for Nat Gas which would impact Shell, BP, and lots of oil & gas firms.

    https://ycharts.com/companies/FSLR/gross_profit_margin

    Hate them all you want for what they do, but making money is not against the law and wind and solar firms are doing it as well.

    • Ross

      If they were just making money there wouldn’t be a problem. It is the global warming and dirty pollution that is the problem and that they can treat the atmosphere as a sewer despite the massive external costs this has and will impose on society.

    • Brian

      Yes, wind and solar are also making money, but they are not destroying our environment, and the Gulf of Mexico with oil spills, and responsible for a massive increase in carbon pumped into our atmosphere, like oil companies are, that is greatly contributing to Global warming. It is predicted that 2016 will be the hottest year on record, and islands are sinking. With the effects of Global Warming getting worse, their is no excuse for these dirty oil companies to profit off the destruction of the planet. It is not a crime to make money, but when one makes money, from a business that destroys our environment like these dirty oil companies do, then it is a crime.

  • Ross

    The transition isn’t to a lower carbon system. It is to negative carbon. Their legacy business needs to be made unprofitable as quickly as possible so that most of their reserves can never be exploited.

  • Brian

    This is what is needed. If we can force these greedy oil companies like BP and Shell to jump ship and embrace wind and solar power, we can force them to close their dirty oil leases in the Gulf of Mexico and end their dirty oil drilling operations. As the profit from dirty oil and gas diminishes, hopefully these greedy dirty oil companies will switch to clean renewables. BP for instance could replace it’s floating oil rigs, like the Horizon, which blew up killing 11 people, with floating wind turbines.

    • wattleberry

      Not sure that Shell, nor the Middle East oil states for that matter, would consider they are being ‘forced by us’ particularly so much as ‘jumping before they are pushed’ to try to remain relevant. Whatever, it’s to be commended and it’ll be interesting to see how many of their fellows make a similar leap while time permits.

    • No way

      The problem with Shell is that the company is so nasty that even if they go into renewables a lot of people, nature and the general environment will be damaged a lot in some way.

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