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Released April 25, 2018 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Oil and gas major Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands) has announced plans to spend up to $2 billion per year to 2020 as part of its transition to lower-carbon energy.
The company aims to invest the money in its green energy division, which is tasked with expanding the renewables business. Industrial Info has been tracking the company's first forays into the renewables sector since last year when Shell committed to dramatically increasing its investment in renewable energy to $1 billion a year by the end of the decade. For additional information, see March 31, 2017, article - Shell Ups Renewables Spending to $1 Billion a Year.
In its Energy Transition Report, Shell stated: "The decline in costs of solar and wind generation, along with the electrification of the energy system, make the development of renewable energy resources increasingly attractive for society, and an attractive investment opportunity for Shell."
Shell Chief Executive Officer Ben van Beurden said: "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."
The report said that the transition and the volatility in the oil and gas market will not negatively impact its key oil and gas businesses. It said that the "risk of stranded assets in the current portfolio is low." Shell estimates that around 80% of its current proved oil and gas reserves will be produced by 2030 and only around 20% after that time.
The company is currently under pressure from its own shareholders to increase its renewable energy commitment and reduce its CO2 footprint. Last week, Shell urged investors to oppose a shareholder resolution by Follow This, a climate activist shareholder group, calling for the company to set more aggressive targets aligned with the Paris Climate Agreement goal of limiting global warming to "well below" 2 degrees Celsius. Van Beurden told media: "We share the objective of Follow This for Shell to show leadership in the energy transition, but at the same time we consider the resolution unnecessary given that we have already outlined an approach that is much wider-ranging and much more progressive."
Shell has been broadening its role in renewable-energy generation as the global demand for low-carbon energy sources grows. It expects to begin construction early next year on the $641.7 million Phase III and $641.7 million Phase IV of the Borssele Windfarm, offshore Westkapelle, Netherlands. Each phase includes the installation of 39 Vestas turbines, each with a capacity of 9 megawatts (MW), on offshore steel towers for a total output of about 350 MW. For more information, see Industrial Info's project reports on Phase III and Phase IV.
Earlier this year, Shell purchased a 43% stake for $217 million in Silicon Ranch Corporation (Nashville, Tennessee), a developer, owner and operator of solar energy plants in the U.S. Silicon Ranch has 880 MW of photovoltaic (PV) systems that are contracted, under construction, or operating in 14 states. Industrial Info is tracking $322 million in active projects involving Silicon Ranch and $1.48 billion in active renewable energy projects involving Shell. For additional information, see January 16, 2018, article - Shell Expands Role in Renewables with Stake in Tennessee Solar Company.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The company aims to invest the money in its green energy division, which is tasked with expanding the renewables business. Industrial Info has been tracking the company's first forays into the renewables sector since last year when Shell committed to dramatically increasing its investment in renewable energy to $1 billion a year by the end of the decade. For additional information, see March 31, 2017, article - Shell Ups Renewables Spending to $1 Billion a Year.
In its Energy Transition Report, Shell stated: "The decline in costs of solar and wind generation, along with the electrification of the energy system, make the development of renewable energy resources increasingly attractive for society, and an attractive investment opportunity for Shell."
Shell Chief Executive Officer Ben van Beurden said: "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."
The report said that the transition and the volatility in the oil and gas market will not negatively impact its key oil and gas businesses. It said that the "risk of stranded assets in the current portfolio is low." Shell estimates that around 80% of its current proved oil and gas reserves will be produced by 2030 and only around 20% after that time.
The company is currently under pressure from its own shareholders to increase its renewable energy commitment and reduce its CO2 footprint. Last week, Shell urged investors to oppose a shareholder resolution by Follow This, a climate activist shareholder group, calling for the company to set more aggressive targets aligned with the Paris Climate Agreement goal of limiting global warming to "well below" 2 degrees Celsius. Van Beurden told media: "We share the objective of Follow This for Shell to show leadership in the energy transition, but at the same time we consider the resolution unnecessary given that we have already outlined an approach that is much wider-ranging and much more progressive."
Shell has been broadening its role in renewable-energy generation as the global demand for low-carbon energy sources grows. It expects to begin construction early next year on the $641.7 million Phase III and $641.7 million Phase IV of the Borssele Windfarm, offshore Westkapelle, Netherlands. Each phase includes the installation of 39 Vestas turbines, each with a capacity of 9 megawatts (MW), on offshore steel towers for a total output of about 350 MW. For more information, see Industrial Info's project reports on Phase III and Phase IV.
Earlier this year, Shell purchased a 43% stake for $217 million in Silicon Ranch Corporation (Nashville, Tennessee), a developer, owner and operator of solar energy plants in the U.S. Silicon Ranch has 880 MW of photovoltaic (PV) systems that are contracted, under construction, or operating in 14 states. Industrial Info is tracking $322 million in active projects involving Silicon Ranch and $1.48 billion in active renewable energy projects involving Shell. For additional information, see January 16, 2018, article - Shell Expands Role in Renewables with Stake in Tennessee Solar Company.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
