Reports related to this article:
Project(s): View 2 related projects in PECWeb
Plant(s): View 1 related plant in PECWeb
Released March 31, 2017 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Royal Dutch Shell plc (NYSE:RDS-A) (The Hague, Netherlands) is planning to dramatically increase its investment in renewable energy to $1 billion a year by the end of the decade.
Shell's chief executive officer, Ben van Beurden, said that renewables will play a larger role in the company's mix over a shorter space of time.
"The transition toward cleaner energy will be a multi-decade initiative that will move the industry toward less carbon output by putting a price on carbon emissions," van Beurden told delegates at the recent CERAWeek event in Houston, Texas. The oil and gas company is one of a growing number attempting to broaden their portfolios with more renewable energy assets. Last May, Industrial Info reported on Shell's launch of its New Energies division. It was to have an initial capital investment of $1.7 billion, combine the company's existing biofuels, hydrogen and electrical operations under one banner, and act as the launch pad into wind energy with an annual budget of $200 million. The new investment plan is five times higher. For additional information, see May 23, 2016, article - Shell to Launch Renewable Energy Division.
A few months earlier, rival Statoil ASA (OSE:STL) (Stavangar, Norway) announced a $200 million renewables investment fund, which will be used to finance projects in Europe and the U.S. For additional information, see February 24, 2016, article - Statoil Launches $200 Million Renewable Energy Fund.
Van Beurden pointed out that the energy transition from traditional fossil fuels such as oil will take decades. He warned that companies in his sector have a difficult time convincing the public that the oil and gas sector is committed to supporting cleaner forms of energy.
Van Beurden said, "The most difficult challenge to me is to have a meaningful discussion with the public on energy transition. The discussion is not rational, it is emotional. That can be complicated and at times frustrating. You want to be a force for good, but that's sometimes hard to show."
He added: "If we're not very careful, with all the good intentions and advocacy that we have, we may, as a sector and society, not make the progress that is needed. I do think trust has been eroded to the point that it is becoming a serious issue for our long-term future. If we are not careful, broader public support for the sector will wane."
Shell's renewables ambitions received a boost in December when its consortium secured one of Europe's leading offshore wind projects in the Netherlands. The Borssele III and IV windfarms will have a combined generating capacity of up to 700 megawatts (MW). The other partners include Dutch marine engineering firm Van Oord (Rotterdam, Netherlands), Eneco (Rotterdam) and Diamond Generating Europe, a wholly owned subsidiary of Mitsubishi Corporation (Tokyo, Japan). MHI Vestas Wind Systems A/S (OMX:VWS) (Aarhus, Denmark) will supply the turbines, and the projects are expected to be commissioned in 2020. For additional information, see December 15, 2016, article--Shell Consortium Wins Dutch Offshore Wind Project.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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.
Shell's chief executive officer, Ben van Beurden, said that renewables will play a larger role in the company's mix over a shorter space of time.
"The transition toward cleaner energy will be a multi-decade initiative that will move the industry toward less carbon output by putting a price on carbon emissions," van Beurden told delegates at the recent CERAWeek event in Houston, Texas. The oil and gas company is one of a growing number attempting to broaden their portfolios with more renewable energy assets. Last May, Industrial Info reported on Shell's launch of its New Energies division. It was to have an initial capital investment of $1.7 billion, combine the company's existing biofuels, hydrogen and electrical operations under one banner, and act as the launch pad into wind energy with an annual budget of $200 million. The new investment plan is five times higher. For additional information, see May 23, 2016, article - Shell to Launch Renewable Energy Division.
A few months earlier, rival Statoil ASA (OSE:STL) (Stavangar, Norway) announced a $200 million renewables investment fund, which will be used to finance projects in Europe and the U.S. For additional information, see February 24, 2016, article - Statoil Launches $200 Million Renewable Energy Fund.
Van Beurden pointed out that the energy transition from traditional fossil fuels such as oil will take decades. He warned that companies in his sector have a difficult time convincing the public that the oil and gas sector is committed to supporting cleaner forms of energy.
Van Beurden said, "The most difficult challenge to me is to have a meaningful discussion with the public on energy transition. The discussion is not rational, it is emotional. That can be complicated and at times frustrating. You want to be a force for good, but that's sometimes hard to show."
He added: "If we're not very careful, with all the good intentions and advocacy that we have, we may, as a sector and society, not make the progress that is needed. I do think trust has been eroded to the point that it is becoming a serious issue for our long-term future. If we are not careful, broader public support for the sector will wane."
Shell's renewables ambitions received a boost in December when its consortium secured one of Europe's leading offshore wind projects in the Netherlands. The Borssele III and IV windfarms will have a combined generating capacity of up to 700 megawatts (MW). The other partners include Dutch marine engineering firm Van Oord (Rotterdam, Netherlands), Eneco (Rotterdam) and Diamond Generating Europe, a wholly owned subsidiary of Mitsubishi Corporation (Tokyo, Japan). MHI Vestas Wind Systems A/S (OMX:VWS) (Aarhus, Denmark) will supply the turbines, and the projects are expected to be commissioned in 2020. For additional information, see December 15, 2016, article--Shell Consortium Wins Dutch Offshore Wind Project.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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.
