The fight against climate change requires urgent action, an unprecedented level of cooperation and partnership among governments, companies, and customers. The energy transition will be the largest known technological revolution. Shell Plc also sets climate goals: to become a zero-emissions energy business by 2050; to halve absolute greenhouse gas emissions by 2030 compared to 2016 levels on a net basis. This means all emissions from its own operations, such as refining, oil and gas extraction, and chemical production, as well as all emissions from the energy purchased to perform these operations, such as electricity, heat, and steam.
The world will need less oil and gas as it transitions to a low and zero-carbon energy system. In 2021, oil production at Shell Plc was 3.9% lower than the previous year and 7.6% lower than in 2019.
In 2021, Shell Plc launched the Powering Progress strategy. While according to the International Energy Agency (IEA) global CO2 emissions associated with energy actually grew by 2.4% from the end of 2016 to the end of 2021, Shell Plc, on the contrary, reduced emissions by 18% during this period. This indicates significant progress towards the goal of a 50% reduction by 2030.
In addition, in the first year of implementing the strategy, Shell Plc:
· Initiated collaborations with leading companies that also aim to be at the forefront of the energy transition.
· Continued to build its material energy business. Shell Plc has 4.7 GW of renewable generation in construction and/or for sale and 38 GW in future projects.
· Expanded its hydrogen business. Started producing 30 MW electrolyzers capable of producing about 4300 tons of decarbonized hydrogen per year. Shell Plc currently owns and operates 10% of the world's electrolyzer capacity.
· Made an investment decision to produce 820,000 tons of biofuel a year in the Netherlands. This facility will be one of the largest in Europe for producing sustainable aviation fuel and renewable diesel made from waste. Production is expected to start in 2024.
· Continued to build the infrastructure needed by the company's customers as they transition to low and zero-carbon energy.
· Expanded the EV charging network from 60,000 points to nearly 90,000.
· Increased the number of liquefied natural gas refueling points in Europe and hydrogen refueling stations in Europe, North America, and China.
· Announced ambitions for SAF to constitute at least 10% of aviation fuel sales by 2030.
· Expanded LNG bunkering operations to help reduce emissions from the marine sector.
· Worked with customers in sectors such as commercial, light industry, and technology to decarbonize their energy consumption by providing renewable energy.
· Established partnerships in the heavy industry sector to explore how hydrogen and carbon storage can be used to reduce global carbon emissions.
· Invested in CCS. Shell Plc has two operational projects and over 10 in development.
· Removed approximately 6 million tons of natural credits, excluding trading activities.
· Supported government policies related to climate that advance the goals of the Paris Agreement on climate change.
Shell Plc is building a low-carbon business for the future, an important part of which is the ability to work sector by sector with customers and stakeholders. The company listens to its customers to understand what they value and need. Demand for decarbonization products and services is rising. More than 2000 companies and organizations have already committed to achieving net-zero emissions by 2050.
Shell Plc is now forming strategic alliances with major multinational companies such as Microsoft and Amazon, helping them achieve their zero goals.
“In 2021, we made significant strides. We completed one of the largest restructurings in our history, making us a more dynamic company. Now our goals are becoming even more ambitious,” said Ben van Beurden, CEO of Shell Plc.
