SHELL PLC
Shell is increasing the number of electric vehicle charging points
globally for homeowners and businesses.
* Renewable generation capacity figures are gross. Source: Shell
RENEWABLES AND ENERGY SOLUTIONS
a selection of investments, acquisitions and ventures
YEAR BUSINESS FOUNDED
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2016 Wind
-- Blauwwind*, NL
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2017 Mobility Energy solutions Energy access
-- Acquired NewMotion, NL -- Shell Energy Retail, UK (acquired as First Ut -- SolarNow*, Uganda
ility)
-- Connected Freight*, Philippines -- Innowatts*, USA -- SteamaCo*, Kenya
-- Sunseap*, Singapore
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Trading Hydrogen
-- Acquired MP2 Energy, USA -- Opened hydrogen stations in the UK and USA
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2018 Solar Wind Energy solutions
-- Silicon Ranch*, USA -- Atlantic Shores Offshore Wind*, USA -- Shell Energy Inside, USA
-- Cleantech Solar*, Asia -- Mayflower Wind Energy*, USA
-- Opened Moerdijk solar farm, NL -- TetraSpar*, Norway
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Hydrogen Energy access Mobility
-- Opened hydrogen stations in California, USA -- Husk Power*, India -- Ample*, USA
-- HyET Hydrogen*, NL -- SunFunder*, Kenya
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2019 Mobility Wind Energy solutions
-- Acquired Greenlots, USA -- Acquired EOLFI, France -- Acquired sonnen, Germany
-- Acquired Hudson Energy UK (rebranded to Shell Energy
-- Ravin.ai*, UK -- CoensHexicon*, South Korea Retail in 2020)
-- LO3 Energy*, USA
-- Revel*, USA -- Corvus Energy*, Norway
-- Aurora*, USA
-- Nordsol*, NL
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Nature-based solutions Energy access Trading
-- Orb Energy*, India -- Acquired ERM Power (rebranded to Shell Energy in
-- Nature-based solutions projects under way in 2020), Australia
Australia, Malaysia, Netherlands, Spain and UK -- PowerGen*, Kenya
-- Acquired Limejump, UK
-- d.light*, Kenya
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Solar Hydrogen
-- ESCO Pacific*, Australia -- Announced plans to build Rheinland Hydrogen
Electrolyser, Germany
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2020 Solar Mobility Wind
-- Final investment decision to build Gangarri solar -- Masabi*, UK -- Shell and Eneco awarded tender to build 759 MW
farm, Australia Hollandse Kust (noord) offshore wind farm, NL
-- InstaFreight*, Germany
-- Spiffy*, USA
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Nature-based solutions Hydrogen Energy solutions
-- Announced plans to build 20 MW green hydrogen -- Palmetto*, USA
-- Select Carbon, Australia electrolyser and refuelling stations, China
-- ZeroAvia*, USA -- GreenCom*, Germany
-- Climate Bridge*, China
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* Minority investments
CAPITAL ALLOCATION
Shell's financial strength and access to capital give us the ability to
reshape our portfolio as the energy system transforms and demand
changes. They also allow us to withstand volatility in oil and gas
markets. This strong financial framework is based on sector-leading cash
flow, continued capital discipline, capital flexibility and a strong
balance sheet.
THE FINANCIAL FRAMEWORK THAT SUPPORTS OUR STRATEGY
We look to achieve the right balance between shareholder distributions
and investing for the future, laying the foundation for both increased
distributions and share price appreciation.
While our net debt is above the level of $65 billion, we plan to invest
$19--22 billion a year across our portfolio. This will sustain our core
businesses while funding moderate growth.
Once we have reduced net debt to $65 billion, we will look to further
increase total shareholder distributions. Through progressive dividend
and share buybacks, we are targeting total distributions to shareholders
of 20-30% of our cash flow from operations. We will also seek to
increase capital spending in a disciplined way. With this approach we
expect that we will:
1) Limit our investments in Upstream. Our oil production peaked in 2019
and we expect that it will gradually decline by 1-2% a year through to
2030.
2) Maintain our investments in our Transition businesses. We expect to
see the share of gas rise to 55% of our hydrocarbon production in 2030.
3) Increase investments in our Growth businesses to build material
low-carbon businesses of significant scale by the early 2030s.
As Shell progresses towards being a net-zero emissions energy business
our cash flows will increasingly come from our Growth pillar, becoming
less exposed to oil and gas prices with a stronger link to broader
economic growth. As one of the largest commodity traders in the world,
we expect additional opportunities to enhance cash delivery through
integration and optimisation.
The characteristics of our Growth pillar mean that levels of capital
investment are likely to be a poor proxy for the scale of the
transformation of our business. Instead, we believe the best way to
measure our progress towards our targets is through the carbon intensity
of the energy products we sell, and the cash flows delivered by our
business pillars. This is because our Growth pillar is likely to be less
capital intensive than our Upstream and Integrated Gas businesses.
OUR CARBON FRAMEWORK
We will take the same approach to managing and reducing our emissions as
we have done for managing our financial framework, that is by setting
constraints, or budgets.
We will be setting carbon budgets for all our businesses and these will
help to drive investment decisions which will in turn drive down our
emissions. In this way, we will decouple our business growth from carbon,
transforming what we sell and what we produce.
(MORE TO FOLLOW) Dow Jones Newswires
04-15-21 0215ET
