Shell pins 2050 date for complete carbon-neutrality

Royal Dutch Shell has outlined its plans to become completely carbon-neutral by 2050 marking a continued trend within the energy sector of cutting carbon emissions and championing greener energy.

The energy giant will be consolidating its portfolio into what it refers to as its Powering Progress initiative, coming as part of a complete rebranding in what the company referred to as its "reshaped organisation."

Read more: Shell to buy UK's largest EV charging operator

Shell has already made waves in renewable sources with its purchase of ubitricity, which currently operates the UK's largest network of electric vehicle charging stations - operating a 13% share within the market.

Shell and many other fossil fuel companies struggled during the pandemic as significantly reduced demand caused sent oil prices haywire, with them even dropping below zero for the first time in history.

The company reported a 71% drop in 2020 earnings but did raise its dividend in light of a potentially bright future.

Items on the agenda for the energy giant include increasing its dividend by an amount of 4% per year, awaiting board approval, as well as reducing its net debt down to $65 billion (€53.5 billion) and retaining near-term annual income of around $19-22 billion (€15.6-18.1 billion).

The company has set itself a number of short-term targets in order to allow it to meet its long-term goals.

Its carbon intensity - a measurement per megajoule of energy sold - would be reduced by 8% by 2023, increasing exponentially to 20% by 2030, 45% by 2035 and finally 100% by 2050, based on 2016 levels.

Its original plans were to cut these emissions intensity by 3% by 2022, 30% by 2035 and 65% by 2050.

Shell also noted it reached its peak carbon emissions in 2018 and peak oil production in 2019 and expects these numbers to continue to decline.

Shell CEO Ben van Beurden said: “Our accelerated strategy will drive down carbon emissions and will deliver value for our shareholders, our customers and wider society.

“We must give our customers the products and services they want and need – products that have the lowest environmental impact. At the same time, we will use our established strengths to build on our competitive portfolio as we make the transition to be a net-zero emissions business in step with society.

“Whether our customers are motorists, households or businesses, we will use our global scale and trusted brand to grow in markets where demand for cleaner products and services is strongest, delivering more predictable cash flows and generating higher returns.”

One item on the agenda is Shell's commitment to low-carbon or alternative biofuels.

Shell recently produced 500 litres of synthetic kerosene to Dutch airliner KLM for the world's first flight using synthetic biofuels.

Read more: KLM operates world's first flight with synthetic fuel

The Netherlands is one of the leading players in developing sustainable biofuels and is poised to see the entire European aviation sector carbon-neutral by 2050.

A commitment to sustainable fuels will be essential in the move towards complete decarbonisation of major manufacturing and production centres and to meet many nation's climate targets.

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