Shell Oil Company Will Invest R$ 3 Billion in Solar, Wind, and Thermal Energy Projects

The Company Announced The Launch Of The Shell Energy Brand, Which Will Act Only In The Development Of Clean Energy Projects

The Anglo-Dutch multinational Shell plans to invest more than R$ 3 billion in renewable energy projects in Brazil by 2025. The strategy of one of the largest oil and gas producers in the world is to expand solar energy, offshore wind, and natural gas-fired power plants. According to Shell, Brazil is one of the priority markets in the world, alongside the United States, Australia, and Western Europe. Also Read This News: Shell, Global Oil Giant, Will Produce Ten Times More Sustainable Aviation Fuel By 2025

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Shell Aims To Expand The Marketing Of Electricity From Renewable Sources

The company announced the launch of the Shell Energy brand, which will act only in the development of clean energy projects. According to Guilherme Perdigão, Director Of New Energies At Shell Brazil And Shell Energy, the company’s focus is to invest in electric power generation projects and expand the marketing of electricity from renewable sources.

The executive states that “There is an increase in electricity consumption in Brazil and a forecast of 5% growth per year. Brazil is a priority for Shell. Of the R$ 3 billion in investments planned until 2025, a large part will be in solar projects and natural gas-fired power plants.” The executive highlighted that the company intends to participate in the emergency auction that will be conducted by the government for the procurement of energy through power plants.

Recently, Shell Partnered With Gerdau For Investments In A New Solar Power Plant

Shell Brazil and Gerdau closed a cooperation partnership to invest in a solar power plant in the municipality of Brasilândia de Minas, in Minas Gerais. The partnership establishes initial ideas for the creation and discussion of a new joint venture.

The plant, named Aquarii, will have an installed capacity of 190 MW and will provide a portion of sustainable energy to the free energy market, through Shell’s energy trading company, and another portion to Gerdau’s steel production units, starting in 2024. The solar joint venture will have equal participation from both companies and is part of the decarbonization and energy transition strategies of the companies.

This is a voluntary step by Shell Brazil in offering more services and products from renewable energy, which is fully aligned with Gerdau’s pursuit of a cleaner energy matrix.

The Company Plans More Investments In Renewable Energy To Achieve Carbon Neutrality

Royal Dutch Shell, or simply Shell, the Anglo-Dutch oil multinational, recently announced that it has an energy transition strategy to align its operations with the goals of ‘net zero’ carbon emissions. The oil company seeks to direct a larger portion of its capital expenditure to growth businesses, such as renewable energy and transition, rather than prioritizing conventional exploration and production areas.

Forbes reported that by 2025, Shell aims to launch 15,000 convenience stores, expand its retail service portfolio, and install around 500,000 charging points for electric vehicles. Curiously, the company launched Shell Café in the Netherlands and Russia. The growth pillar strategy aims to introduce new revenue streams, maintain market share in resilient sectors, expand the customer base, and gain experience in decarbonizing mobility and other sectors.

Additionally, Shell aims to achieve a double-digit share in the clean hydrogen market by 2035. It is estimated that these businesses will receive 30% of the capital expenditure budget, while net debt falls to below US$ 65 billion.