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