Shell has set out how it plans to reach net zero emissions by 2050 with the publication of its Energy Transition Strategy.
On 15 April, it presented the strategy ahead of it being put to shareholders for an advisory vote at its AGM on May 18. It set out a series of targets as it progresses to becoming a net zero energy business by 2050, reducing its carbon intensity by 2-3% in 2021, rising to 20% by 2030, before climbing to 100% by 2050, while cutting absolute emission from 1.7 gigatonnes CO2e per annum (gtpa) as of 2018 to zero in the same timeframe. It will publish an update to the strategy every three years, while also seeking an advisory vote on its progress towards plans and targets each year, starting in 2022.
The strategy further outlines a set of 2030 milestones, including goals to produce eight times more low carbon fuels, such as biofuels and hydrogen, by 2030 and increase low carbon fuel sales to more than 10% of transport fuels. On hydrogen specifically, Shell stated that while the clean hydrogen market remains in the early stages and volumes are modest, it sees “strong potential for growth”, especially in hard-to-abate sectors of the economy. Its goal is to achieve a double-digit market share of global clean hydrogen sales by 2030.
It is pledging to build on its leading position in hydrogen and develop integrated hydrogen hubs which will, at first, serve industry and heavy-duty transport. It will begin by producing and supplying hydrogen for its own manufacturing sites, especially refineries, such as in Rheinland in Germany. Here, Shell is developing a hydrogen electrolyser at its refinery, while it will also continue working to extend its network of hydrogen retail stations with an increasing focus on heavy-duty transport.
It further outlined a set of 2030 milestones, including doubling the amount of electricity sold, delivering the equivalent of more than 50mn households with renewable electricity and operating around 2.5mn electric vehicle (EV) charging points, as well as targeting more than 25mn tonnes per annum of carbon capture and storage (CCS) by 2035.
