Released March 15, 2024 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Anglo-Dutch energy major Shell plc (NYSE:SHEL) (London, England) said it would spend as much as $15 billion on low-carbon energy solutions by 2025, but scaled back its ambitions on carbon intensity.
Shell under former Chief Executive Officer (CEO) Ben van Beurden set a target of cutting its net carbon intensity 20% by 2030, 45% by 2035 and to net zero by 2050. Net carbon intensity refers to the amount of emissions derived by each unit of energy sold by Shell.
Under CEO Wael Sawan, the company said Thursday it would dial that back to a target of 15-20% by 2030. The company said in its latest progress report on its energy transition that reducing net carbon intensity requires actions from both Shell itself and its consumer base.
"While we can encourage the uptake of low-carbon products and solutions, we cannot control the final choices customers make," the company said.
The report follows commentary from researchers at the Paris-based International Energy Agency (IEA) that stated that, while the energy transition needs to continue, fossil fuels will remain part of the energy landscape for the foreseeable future.
The IEA in the past called for an end to new upstream efforts, but also noted this week that "deep-rooted" dependencies on a handful of suppliers means the market remains vulnerable to geopolitical risks that "can still cause significant economic harm and have a substantial negative impact on people's lives."
Natural gas is particularly vulnerable to geopolitical issues due to Russia's former dominance as an exporter to Europe. The bloc endured record-high prices and supply-side challenges until markets readjusted to alternative volumes from the likes of Qatar and the United States.
In its update on Thursday, Shell said it considered liquefied natural gas (LNG), which because of the transit options is not as exposed to geopolitical risk as interstate piped gas, to be the critical fuel during the energy transition.
Shell believes global demand for LNG could increase by more than 50% from current levels by 2040 as the expanding economies in Asia move their industries from coal to gas-fired power.
Elsewhere, Shell said it remained committed to alternative sources of energy, such as fuels derived from the decomposition of organic matter to hydrogen. In 2023, the company said it invested $5.6 billion in low-carbon energy, roughly 25% of its total capital spending for the year.
Looking ahead, Shell said it would invest $10-15 billion between now and the end of 2025 in low-carbon energy solutions.
"By providing the different kinds of energy the world needs, we believe we are the investment case and the partner of choice through the energy transition," CEO Sawan said.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Shell under former Chief Executive Officer (CEO) Ben van Beurden set a target of cutting its net carbon intensity 20% by 2030, 45% by 2035 and to net zero by 2050. Net carbon intensity refers to the amount of emissions derived by each unit of energy sold by Shell.
Under CEO Wael Sawan, the company said Thursday it would dial that back to a target of 15-20% by 2030. The company said in its latest progress report on its energy transition that reducing net carbon intensity requires actions from both Shell itself and its consumer base.
"While we can encourage the uptake of low-carbon products and solutions, we cannot control the final choices customers make," the company said.
The report follows commentary from researchers at the Paris-based International Energy Agency (IEA) that stated that, while the energy transition needs to continue, fossil fuels will remain part of the energy landscape for the foreseeable future.
The IEA in the past called for an end to new upstream efforts, but also noted this week that "deep-rooted" dependencies on a handful of suppliers means the market remains vulnerable to geopolitical risks that "can still cause significant economic harm and have a substantial negative impact on people's lives."
Natural gas is particularly vulnerable to geopolitical issues due to Russia's former dominance as an exporter to Europe. The bloc endured record-high prices and supply-side challenges until markets readjusted to alternative volumes from the likes of Qatar and the United States.
In its update on Thursday, Shell said it considered liquefied natural gas (LNG), which because of the transit options is not as exposed to geopolitical risk as interstate piped gas, to be the critical fuel during the energy transition.
Shell believes global demand for LNG could increase by more than 50% from current levels by 2040 as the expanding economies in Asia move their industries from coal to gas-fired power.
Elsewhere, Shell said it remained committed to alternative sources of energy, such as fuels derived from the decomposition of organic matter to hydrogen. In 2023, the company said it invested $5.6 billion in low-carbon energy, roughly 25% of its total capital spending for the year.
Looking ahead, Shell said it would invest $10-15 billion between now and the end of 2025 in low-carbon energy solutions.
"By providing the different kinds of energy the world needs, we believe we are the investment case and the partner of choice through the energy transition," CEO Sawan said.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
