Shell has its released its latest Energy Transition Strategy, in which it informs that it is investing $10-15 billion in low-carbon energy solutions between 2023 and the end of 2025.
Furthermore, Shell acknowledges that liquefied natural gas (LNG) will play a critical role in this transition. According to Shell, not only does LNG offer a lower-carbon alternative to coal for power and industry, but it also contributes to providing secure energy. Alongside wind and solar, LNG provides stability to electricity grids.
In total, we invested $5.6 billion in low-carbon solutions in 2023, which was 23% of our capital spending. We are spending $10-15 billion on low-carbon solutions between 2023 and 2025, making us a significant investor in the energy transition.
… said Wael Sawan, Chief Executive Officer, Shell
Shell’s core beliefs about the energy system
- Liquefied natural gas (LNG) will play a critical role in the energy transition, including replacing coal in industry
- Oil will have a continued role in transport, with growth in demand slowing over time
- Low-carbon molecules and renewable power will underpin the future energy system
- Carbon abatement and removal solutions will be needed for the world to achieve net zero
Recognizing these benefits, Shell is committed to growing its world-leading LNG business by an expected 20-30% by 2030, while simultaneously reducing the carbon intensity of its operations.
Secondly, Shell understands that oil will continue to have a role in transportation, albeit with a slowing growth in demand over time. However, the company is dedicated to producing oil with lower emissions. For instance, in the US Gulf of Mexico, Shell leads operations with one of the lowest greenhouse gas intensities.
Moreover, Shell believes that low-carbon molecules and renewable power will underpin the future energy system. As such, the company is investing significantly in low-carbon energy solutions, including electric-vehicle charging, biofuels, renewable power, hydrogen, and carbon capture and storage. These investments complement Shell’s ongoing commitments in oil and gas.
Lastly, Shell acknowledges that carbon abatement and removal solutions are imperative for achieving a net-zero emissions future. To this end, the company has set ambitious targets for emissions reduction across all scopes.
By the end of 2023, Shell had made substantial progress, achieving over 60% of its target to halve Scope 1 and 2 emissions from its operations by 2030, compared to 2016 levels. Additionally, Shell met its net carbon intensity target for the third consecutive year, achieving a 6.3% reduction compared to 2016.
We also reduced carbon emissions from our operations by 31% compared with 2016 levels, putting us well on the way towards our target of a 50% reduction by 2030 on a net basis. We achieved our short-term target to reduce the net carbon intensity of the energy products we sell, with a 6.3% reduction against our target of 6-8% compared with 2016.
… said Sir Andrew Mackenzie, Chair, Shell
