Shell has revealed plans for a major expansion of its retail business as it unveiled a strategy to accelerate its transformation into a provider of net-zero emissions energy products and services.
Targets relating to the forecourt side of its business include an increase to 40 million customers at 55,000 retail sites globally (from 30 million at 46,000 sites today), and growth of its global electric vehicle (EV) network from more than 60,000 charge points today to around 500,000 by 2025.
It also intends to extend its biofuels production and distribution business, which in 2019 sold more than 10 billion litres of biofuels. Its joint venture Raízen, which produces low-carbon fuels from sugar cane in Brazil, recently announced the acquisition of Biosev. This is set to increase Raízen’s bioethanol production capacity by 50%, to 3.75 billion litres a year, around 3% of global production.
Shell also intends to expand its hydrogen business by developing integrated hydrogen hubs to serve industry and heavy-duty transport, with the target of achieving a double-digit share of global clean hydrogen sales.
In addition, it aims to increase its liquefied natural gas (LNG) volumes and markets, with selective investment in LNG assets to deliver more than 7 million tonnes per annum of new capacity by the middle of the decade.
As part of the announcement it revealed expectations that total carbon emissions for the company peaked in 2018, and oil production peaked in 2019.
“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.
“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 make the transition to be a net-zero emissions business in step with society.
“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.”
No comments yet