The Strategist

Shell to increase investment in green energy

12/27/2018 - 11:49

Shell, an energy company that earlier promised to invest $ 1–2 billion a year in green energy, announced plans to increase this amount to $ 4 billion. Head of the gas and new energy division, Maarten Wetselaar, said this, also telling about Shell’s plans to more actively enter the electricity market.

Catherine Hammond
Catherine Hammond
Maarten Wetselaar, head of the gas and new energy division of the British-Netherlands energy company Royal Dutch Shell, said in an interview with the British newspaper The Guardian that the company plans to increase its investments in green energy twice, to $ 4 billion. Earlier, Shell has promised to invest $ 1–2 billion a year in renewable energy sources. This is still a rather small share of the company's total investments, which amount to $ 25 billion a year. According to Mr. Wetselaar, if the first investment in green energy pays off, the amount can be increased from 2020.

He also noted that the company wants to be more active in the supply of electricity. Last year, Shell already acquired the British company First Utility, which deals with the electricity and gas supply.

“There is no global electricity supplier in the world. And there is no global brand in the electric power industry. We deliver energy around the world, and we have a global brand,” said Head of Shell’s division.

In his opinion, the most promising renewable energy source is solar, since it can be produced in many countries. Also, according to Mr. Wetselaar, Shell wants to strengthen its presence in the wind energy market.

Recently, more and more traditional energy and oil and gas companies have declared their readiness to invest in green energy. In late November, the largest Danish energy company Orsted announced that by 2025 it was going to invest $ 30 billion in this area. In February, the Norwegian Statoil announced its intention to invest more actively in this area. BP also announced plans to increase investment in alternative energy sources to $ 500 million a year. According to analysts of the research company Wood Mackenzie, by 2030, alternative energy will account for about 20% of all investments of the largest energy companies.