November 28 (Renewables Now) - Royal Dutch Shell Plc (LON:RDSA) today said it will be investing more than previously planned in new energies, with annual capital allocation to that business through 2020 now seen at USD 1 billion-2 billion (EUR 840m-1.68bn).
In the summer of 2017 the plan was to spend up to USD 1 billion on low-carbon technologies such as wind energy, biofuels and electromobility. When New Energies was launched in 2016, annual spending was projected to be around USD 200 million.
The company is already involved in major offshore wind projects, ethanol production and hydrogen research, and it recently announced the acquisition of NewMotion, an electric car charging firm, as part of a "long-term plan to provide more people with cleaner energy". Shell will also work with IONITY, a joint venture of major carmakers in Europe that aims to develop and implement a High-Power Charging (HPC) network for electric vehicles across the continent.
Overall, Shell's annual capital investment in 2018-2020 will remain at USD 25 billion-30 billion, but at current oil prices it could stay at the bottom end of the range, or even below it, the company said. Investment in new energies represents a tiny portion of total spending. For now that business, together with shales, is in the “emerging opportunities” category. Integrated Gas, conventional oil and gas, and Oil Products are “cash engines”, while deep water and Chemicals are “growth priorities”. Shell expects deep water to turn into a cash engine by 2020, and shales to joint the list of growth priorities by 2020.
The company today also presented a plan to cut the net carbon footprint of its energy products by some 50% by 2050. The interim goal is for a roughly 20% reduction by 2035.
“We will do this in step with society’s drive to align with the Paris goals, and we will do it by reducing the net carbon footprint of the full range of Shell emissions, from our operations and from the consumption of our products,” said CEO Ben van Beurden.
(USD 1 = EUR 0.84)