Oil and gas giant Shell has confirmed its intention to embrace “new energies” as part of wider plans to re-shape the company.
The company said at its capital markets day that the sector is expected to feature “significant growth priorities” beyond 2020 “as we establish clear pathways to profitability”.
Shell said investment remains relatively low and focused on “current positions and identifying potential opportunities”.
It added: “Free cash flow will likely be negative and returns low for some time. Capital employed is constrained until attractive opportunities are developed.”
Shell said there is potential for new energies to achieve material scale and profitability as the energy transition unfolds.
“We intend to establish a portfolio to build on our established strengths in low-carbon biofuels, hydrogen and smart customer solutions; as well as in solar and wind.”
Shell last month bid as part of a wider consortium in the Dutch offshore wind auction, its first offshore wind activity since departing the sector in the last decade.
Looking at its wider business, Shell said it will retain the most competitive and resilient elements through targetted investment while also carrying out “substantial asset sales”.
It said: “This is a value-driven, not time-driven, divestment programme; and an integral element of Shell’s portfolio improvement plan.”
Image: previous Shell interests included the pre-construction London Array wind farm (reNEWS)
