Shell readies for energy transition, reports low risk of stranded assets
Coming hot on the heels of its Sky report, which envisaged a very strong role for renewables, particularly solar, well before 2050, the Anglo-Dutch company has now released a new report on a strategy for the energy transition, seeking to reshape itself and contribute to society’s shift away from fossil fuels towards the objectives of the Paris Agreement.
In order to achieve its aim to bring down the net carbon footprint of its energy products by around half by 2050, Shell has developed a strategy for the energy transition, which is to ensure its portfolio resilience while adapting to potential changes in the energy system.
Short/medium/long term
Until the end of the decade, the oil major plans to invest in its New Energies division, which focuses on investing between US$1 billion to $2 billion a year, on average, in renewables and low-carbon energies. It expects the largest part of the investments to go into power generation, including solar and wind, which Shell sees as particularly attractive, due to the cost declines.
“Understanding what climate change means for our company is one of the biggest strategic questions on my mind today. In answering that question, we are determined to work with society and our customers. We will help and inform and encourage progress towards the aims of the Paris Agreement. And we intend to continue to provide strong returns for shareholders well into the future,” says Shell CEO, Ben van Beurden.
Used as the reference for the latest report, Sky is the industry’s greenest scenario, which envisages that renewables will overtake fossil fuels as the primary energy source in 2050, whereas after 2060, there will be hardly any fossil fuels in global energy consumption.
https://www.pv-magazine.com/2018/04...ansition-reports-low-risk-of-stranded-assets/
