Energy major Shell says it’s ahead of the curve in terms of carbon intensity – EQ Mag
Multinational energy company Shell said Thursday it met its 2022 target for emissions, which were down about 30% relative to a 2016 benchmark.
Shell in a progress report on its energy transition strategies showed it met its goals in its progress toward becoming a “net-zero emissions energy business” by 2050.
“I am especially proud of the progress we have made in reducing carbon emissions from our operations, with a 30% reduction by the end of 2022 compared with 2016 on a net basis,” said Wael Sawan, Shell’s Chief Executive Officer.
The net carbon intensity of the energy products sold by Shell declined last year by 3.8% compared with 2016 levels, beating the average 2% for the global energy system.
The company reported adjusted net earnings for the fourth quarter of $9.8 billion, with natural gas accounting for roughly 60% of total revenue during the period.
Natural gas, seen as something of a bridge fuel to a cleaner future, was in high demand for much of last year, particularly as the European economy looked to break the grip that Russia had over its energy sector.
Shell in its energy transition report, however, said that much of the reduction in its carbon intensity was the result of an increase in renewable power in its portfolio. The company more than doubled its solar and wind power footprint, and the $1.6 billion acquisition last year of India’s solar and wind company Sprng Energy was its biggest investment in 2022.
From hydrogen to biofuels, Shell said it was engaging with its customers across various sectors to find the best pathway for decarbonization. Hydrogen in particular, the company said, is useful for sectors that are hard to clean up.
Transportation is the largest source of pollution and Shell said it ordered 25 hydrogen-powered trucks in the German market that will be used as a model to understand what it would take for widespread adoption of the alternative fuel.
“We believe the progress we have made in line with our energy transition strategy has been to the benefit of our customers, our shareholders and wider society,” Chairman Andrew Mackenzie said.
The company was nonetheless sued in February by environmental law firm ClientEarth, which holds shares in Shell. Filed in the high court of England and Wales, the lawsuit charged the board with violating their own laws by failing to follow through on an energy strategy that would meet the benchmarks outlined in the Paris climate deal.