Shell has released a new set of targets to achieve net-zero emissions by 2050. The group, whose total CO2 emissions peaked in 2018 at 1.7 Gt/year, intends to reduce its net carbon intensity by 6-8% by 2023, 20% by 2030, 45% by 2035 and 100% by 2050, compared to 2016 levels. Shell plans to have access to an additional 25 Mt/year of carbon, capture and storage (CCS) capacity by 2035; the group is already taking part to three CCS projects with a cumulated CO2 storage capacity of 4.5 Mt/year, namely the operational Quest facility in Canada, the sanctioned Northern Lights project in Norway and the planned Porthos project in The Netherlands.
Shell confirms that its total oil production peaked in 2019 and expects to gradually reduce its output by around 1-2% each year, taking into account divestments and natural decline. The group will reduce its production of traditional fuels by 55% by 2030 by transforming its refinery footprint from 13 sites to 6 "Chemicals and Energy Parks". It also plans to increase its Raízen’s bioethanol production capacity by 50% to 3.75 bn litres per year (i.e. around 3% of global production), and to expand its LNG liquefaction capacity with 7 Mt/year of new capacity by 2030. Shell plans to increase the number of retail services stations from the current 46,000 to 55,000 by 2025 and expand the number of electric vehicle charging points from 60,000 to 500,000 by 2025. Finally, the group aims to double its electricity sales to 560 TWh in 2030, and to develop integrated hydrogen hub.
Earlier in February 2020, Shell released its 2020 preliminary results, posting a loss of US$21.7bn. The group produced 1,803 kb/d of oil (-3.9%) and 95 bcm of natural gas (-12%), including 12 bcm in Europe (-24%). Shell liquefied 33 Mt (-6.5%) and sold 70 Mt (-6.4%) of LNG. Oil products sales declined by 28% to 4,710 kb/d.