Shell

“The impairments in Renewables and Energy Solutions were principally triggered by portfolio choices regarding renewable generation assets in Asia and Europe.”

“In power, we withdrew from projects like the Atlantic Shores Offshore Wind project in the USA to focus on energy storage, flexible generation and trading. Our focused approach puts us in a better position to serve our customers.”

“In 2024 Shell refreshed its renewable generation, energy marketing, and gas and power trading strategy, shifting Shell's asset portfolio towards energy storage and flexible generation with an increased focus on power trading and minimising new investments in offshore wind projects.”

“These actions reduced exposure to assets under development and enabled capital to be redirected towards higher-return opportunities, supporting the goal of returns of around 10% across the Power portfolio by 2030 as referenced at CMD25.”

Shell voluntarily withdrew from Atlantic Shores Offshore Wind, assigning its 50% outstanding membership interests to existing joint venture partner EDF power solutions. The withdrawal ends Shell's participation in the US offshore wind market. The move aligns with Shell's broader power strategy, shifting away from capital-intensive generation projects toward assets that leverage its trading and retail operations.

“After a comprehensive review and in line with Shell's previously announced refocussing of its power strategy on leveraging Shell's strengths in trading and retailing, the conclusion was to not take the CampionWind project forward. Shell therefore returned the lease option to Crown Estate Scotland.”

“Shell believes that returning the CampionWind lease to CES will offer the best opportunity for any potential future the site may have. Substantial pre-investment work has already been undertaken to de-risk the site, which Shell hopes will support any possible future.”

“Today we are raising the bar across our key financial targets, investing where we have competitive strengths and delivering more for our shareholders.”

Shell wants to become the world's leading integrated gas and LNG business. LNG will be one of the most durable energy vectors through the energy transition. Supplying LNG will be the biggest contribution we will make to the energy transition.

Shell will allocate around $8 billion a year to Downstream and Renewables combined, with the company targeting 10% of capital employed in low-carbon businesses by 2030. Capital spend reduced to $20-22 billion per year through 2028.

Shell decided to write off the investment and pause its involvement in Atlantic Shores as the project no longer fits our capabilities nor the returns that we would like. Shell included impairment charges of $996 million, mainly related to renewable generation assets in North America.

“We have a sharp focus on performance, discipline and simplification. When it comes to investment in wind, whether in the US or elsewhere, we will focus on value maximisation in key markets where we have an advantaged position, and the macro context is naturally a key consideration. We have no plans to lead new offshore wind developments, but we remain interested in offtakes to meet customer demand where commercial terms are acceptable and are open to considering potential equity investments on their merits.”

“While we will not lead new offshore wind developments, we remain interested in offtakes where commercial terms are acceptable and are cautiously open to equity positions, if there is a compelling investment case.”

Shell is aiming to sell its stakes in two Scottish floating offshore wind projects, MarramWind and CampionWind, as part of a wider reversal of its green energy commitments. The 5 GW sites, won jointly with ScottishPower in the ScotWind auction just two years earlier, are being marketed as Shell refocuses on oil, gas, and LNG.

Shell is preparing to cut staff from its offshore wind business, primarily in Europe, as CEO Wael Sawan moves the company away from capital-intensive renewable energy. The offshore wind team, mainly based in the Netherlands, faces limitations on spending with fewer projects than anticipated. The reductions follow the departure of key offshore wind leaders Thomas Brostrom and Melissa Read.

“In-line with our Powering Progress strategy, Shell continues to hone our portfolio of renewable generation projects in key markets where we have an advantaged position.”

Shell announced plans to sell stakes in two US renewable energy projects as part of Wael Sawan's strategy to focus on businesses with the highest returns. The moves were part of a broader portfolio rationalisation of the Renewables and Energy Solutions segment.

Sawan pledged to be "ruthless" in improving performance and boosting investor returns. Shell needs to be able to cover its cost of capital and make a return for shareholders. The energy transition must be profitable for it to be sustainable — if society is not able to make the energy transition profitable, it will not happen at scale.

“We are investing to provide the secure energy customers need today and for a long time to come, while transforming Shell to win in a low-carbon future. Performance, discipline, and simplification will be our guiding principles as we allocate capital to enhance shareholder distributions, while enabling the energy transition.”

“We need to continue to create profitable business models that can be scaled at pace to truly impact the decarbonisation of the global energy system. We will invest in the models that work — those with the highest returns that play to our strengths.”

We will make every dollar count, be unemotional with our spend, and deliver performance, not promises.

Thomas Brostrom, Shell's head of renewables and former Ørsted executive, departed the company. His role was eliminated as part of a restructuring under CEO Wael Sawan that split the renewables function into regional units. Brostrom had joined Shell from Ørsted in August 2021 to lead offshore wind and was promoted to head of renewables in February 2022.

“I am of a firm view that the world will need oil and gas for a long time to come. As such, cutting oil and gas production is not healthy.”

Shell and Eneco, through their joint venture Ecowende, won the tender to develop a 760 MW offshore wind farm at Hollandse Kust (west) lot VI in the Netherlands. The bid included commitments to ecological innovation to strengthen marine biodiversity. At the end of 2022, Shell's share of renewable generation capacity was 2.2 GW in operation and 4.2 GW in development.

Ben van Beurden will step down as CEO at the end of 2022 after nine years leading the company. Wael Sawan, currently Director of Integrated Gas, Renewables and Energy Solutions, will succeed him effective 1 January 2023. Under van Beurden, Shell launched the Powering Progress strategy and made significant investments in offshore wind, hydrogen, and renewable power.

Shell confirmed it will end its involvement in the Western Star and Emerald floating offshore wind projects in Ireland, developed with Simply Blue Group. Shell had acquired a 51% stake in the Emerald project in January 2021. The combined pipeline represented over 2 GW of floating wind capacity off the coasts of Clare and Cork.

Shell is pretty good at doing offshore wind. We have won most of the tenders in the Netherlands on offshore wind. The skills that make you good at offshore oil and gas — managing complex offshore projects, understanding weather, logistics, supply chains — transfer directly to offshore wind.

ScottishPower Renewables and Shell won seabed rights in Crown Estate Scotland's ScotWind Leasing auction for two floating offshore wind sites — MarramWind (3 GW) and CampionWind (2 GW) — totalling 5 GW off the east and north-east coast of Scotland. The projects would be developed through two joint ventures.

“Our accelerated strategy will drive down carbon emissions and will deliver value for our shareholders, our customers and wider society. We must give our customers the products and services they want and need — products that have the lowest environmental impact. At the same time, we will use our established strengths to build on our competitive portfolio as we make the transition to be a net-zero emissions business in step with society.”

Shell will spend $2-3 billion annually on Renewables and Energy Solutions as part of the Growth pillar, including offshore wind, hydrogen, and EV charging. Over time, the balance of capital spending will shift towards the Growth pillar businesses, which will attract around half of additional capital spend.