Shell is to ask its shareholders at its 18 May AGM to endorse an energy transition strategy that will see it set a Net Zero target by 2050 for Scope 1, 2 and 3 emissions. It said, “the support of our shareholders is critical for us to achieve our target to become a net-zero emissions energy business.”
But it said it would not be a leader in transition, because “If we moved too far ahead of society, it is likely that we would be making products that our customers are unable or unwilling to buy.”It also said that 30 years was too uncertain as a detailed planning horizon and instead said the detailed pathway to NetZero would be evolved through the company’s regular 10-year plans.
It set out six levers to decarbonise energy in the short, medium and long term:
- Pursuing operational efficiency ;
- Shifting to natural gas;
- Growing its low-carbon power business;
- Providing low-carbon fuels such as biofuels and hydrogen;
- Developing carbon capture and storage;
- Using natural sinks.
By 2030 the company wants to double the amount of electricity it sells, with more than 50 million households on renewable power, and install 2.5 million electric vehicle charge points at Shell forecourts and new locations, as well operating charge points owned by customers and third parties.
But Shell said it would grow its gas business. It promises to reduce oil production by 1-2% per year, – it expects 75% of current proved oil and gas reserves will be produced by 2030 in any case – and halt new exploration by 2025.
That will bring the share of gas in its hydrocarbon production to 55% by 2030, and it says “We intend to extend our leadership in LNG volumes and markets, with selective investments in competitive LNG assets to deliver more than 7 million tonnes per annum of new capacity on-stream by the middle of the decade.” It suggested customers could make that carbon-neutral by using carbon credits to offset emissions.
It also plans major investments in hydrogen and carbon capture and storage.