Microsoft Corp (NASDAQ:MSFT) will be buying renewable energy from Shell International Petroleum Co Ltd under a broader collaboration addressing decarbonisation.
A new alliance will enable the two companies to help each other in achieving their net-zero ambitions, Microsoft said on Tuesday. As part of it, Shell will supply the US software giant with renewable electricity that will help it reach its 100% renewables goal by 2025 and become carbon negative by 2050.
Microsoft and Shell also plan to deepen their collaboration on artificial intelligence (AI) and develop new digital tools supporting the carbon reduction process that Shell will offer to its suppliers and customers. The two have been partnering in the field of AI for three years and developed technologies that were applied across Shell’s business. The UK oil and gas group’s goal is to have a net-zero emissions energy business by 2050, or sooner.
As part of the new strategic alliance, the companies have also committed to explore options for advancing the use of sustainable aviation fuels, and to incorporate data from Shell assets into Microsoft’s Azure cloud computing system to track emission levels and improve risk analysis.
“Our strategic alliance will enable us to push the boundaries of what can be achieved. We believe we can unlock tremendous progress for Shell, Microsoft, our customers and beyond,” said Huibert Vigeveno, Downstream director of Shell.
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