Recently, Shell plc (Shell) has released its inaugural energy transition update since unveiling its Powering Progress strategy in 2021. At their Capital Markets Day in June 2023, they delineated how their strategy generates greater value with fewer emissions, with particular emphasis on the “greater value” aspect. In this energy transition update, they focus on how the same strategy yields “fewer emissions.”
SA market exit confirmation
Shell Plc
Today, through an official statement, Shell Plc has confirmed to ITNA- IT News Africa verified weekend media reports indicating its intention to divest from South Africa. This involves the sale of its downstream assets, which effectively includes over 500 service stations or forecourts operated by the company in the country.
Shell Plc writes “Shell has undertaken a comprehensive review of the Downstream and Renewables businesses across all regions and markets in line with Shell’s focus on performance, discipline, and simplification. As a result of this review, Shell has decided to reshape the Downstream portfolio and intends to divest our shareholding in Shell Downstream South Africa (SDSA). Considering SDSA’s illustrious history, this decision was not taken lightly.”
“Over more than 120 years in South Africa, Shell has built an enormous legacy that we can all be proud of. We have made a significant contribution to nation building by powering lives through our products and services, our people, promoting equity and inclusion, and making a positive impact on society through our social investment programs. We have also built one of South Africa’s most recognisable and loved brands.” adds Shell Plc
The statement concludes by saying “During the divestment process, we will work to preserve Shell Downstream South Africa’s operating capabilities, maintain the Shell brand presence, and secure the best possible outcome for our people and customers in South Africa under new ownership.”
Energy and technology transition
Chief Executive Officer for Shell, Wael Sawan says “Energy has made an incredible contribution to human development, allowing many people around the world to live more prosperous lives. Today, the world must meet growing demand for energy while tackling the urgent challenge of climate change. I am encouraged by the rapid progress in the energy transition in recent years in many countries and technologies, which reinforces my deep conviction in the direction of our strategy.”
Driving towards a net-zero future
Shell is committing $10-15 billion between 2023 and the end of 2025 to low-carbon energy solutions, establishing them as a significant player in the energy transition. In 2023 alone, our investment in low-carbon solutions reached $5.6 billion, representing over 23% of their total capital spending.
Hydrogen and innovative technologies
These investments encompass a range of initiatives, including electric vehicle charging infrastructure, biofuels, renewable power projects, hydrogen technology, and carbon capture and storage ventures. By investing in these innovative technologies, they are actively working to reduce emissions both within Shell and for their customers. Shell’s goal is to facilitate the widespread adoption of these technologies, making them accessible and affordable options for their customers.
Moreover, they are strategically advocating for policies that align with their commitment to the energy transition. This includes supporting national net-zero ambitions through measures such as carbon pricing. Additionally, Shell is prioritizing the provision of secure energy sources while also driving changes in consumer demand and promoting the growth of low-carbon solutions.
Source: Shell Global
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