Shell has declared an ambition to double the amount it spends on green energy to $4bn (£3.2bn) a year, in a sign of how the Anglo-Dutch company is looking to speed up its move to a future beyond oil and gas. Maarten Wetselaar, the head of the gas and new energy unit which generates a third of the company’s revenues, said he wanted to raise Shell’s investment in low carbon energy.
The company has already committed to spend $1bn-$2bn annually in the next two years, with the rest of its total $25bn budget invested in hydrocarbons. Wetselaar said if his initial investments generated a good enough return, he would be able to successfully argue for an increase from 2020 onwards. Stronger government action on global warming and the transition to a low carbon energy system has started a renewed push by oil majors into green energy.
Norway’s state oil company has rebranded as Equinor to reflect its move towards becoming a “broad energy company”, France’s Total has gone big on batteries, and BP has returned to solar six years after exiting the sector. Shell is considered an industry leader on the switch, having invested in solar firms and electric car infrastucture companies. But critics have however said it must move faster.
Source: The Guardian