Shell to Double Power Sales by 2030 in Drive Toward Net-Zero Emissions -- Update
--Shell plans to spend $2 billion-$3 billion a year on
renewables and energy solutions and boost power sales
--The company will continue to grow its natural gas and
chemicals business but oil production is set to steadily
--Investments will also focus on carbon capture and storage
technology, low-carbon fuels and hydrogen
By Jaime Llinares Taboada
Royal Dutch Shell PLC on Thursday disclosed further details of
its green transition strategy, including targets to double
electricity sales, expand liquefied natural gas capacity and
gradually reduce oil production.
The Anglo-Dutch energy major, which is committed to becoming a
net-zero emissions business by 2050, said it will invest between $2
billion and $3 billion a year in renewables and energy solutions
and $3 billion in its marketing segment.
Shell also intends to annually allocate $4 billion to the
integrated gas business, $4 billion-$5 billion to chemicals and
products, and $8 billion to upstream.
The company said it wants to double electricity sales to 560
terawatt hours a year by 2030, and to grow its network of electric
vehicle chargers to 500,000 by 2025. Shell is also seeking to
expand its lubricants and low-carbon fuels businesses, as well as
developing hydrogen hubs and achieving a share of at least 10% of
global clean hydrogen sales.
The FTSE 100 group set new targets to reduce carbon intensity by
6%-8% by 2023, 20% by 2030 and 45% by 2035 compared to 2016. It
plans to add 25 million tons a year of carbon capture and storage
capacity by 2035. Shell confirmed its oil production peaked in 2019
and will gradually decline by 1% or 2% a year.
Shell said it will aim to increase its liquefied natural gas
capacity by 7 million tons a year by the middle of the decade, and
to increase cash generation from chemicals by $1 billion-$2 billion
a year by 2030. However, the company aims to do so while more than
halving production of traditional fuels and focusing on circular
chemicals, produced from recycled waste such as plastic.
"Whether our customers are motorists, households or businesses,
we will use our global scale and trusted brand to grow in markets
where demand for cleaner products and services is strongest,
delivering more predictable cash flows and generating higher
returns," Chief Executive Ben van Beurden said.
The company said it would maintain its dividend policy of
increasing payouts by around 4% a year and reduce net debt to $6.5
billion. Shell said in the near-term it would pursue divestments of
around $4 billion a year, outpacing underlying operating expenses,
and it expects its cash flow to become gradually less exposed to
London-listed shares at 0832 GMT were down 14.4 pence, or 1.1%,
at 1,348.8 pence.
Write to Jaime Llinares Taboada at firstname.lastname@example.org;
(END) Dow Jones Newswires
February 11, 2021 03:51 ET (08:51 GMT)
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