Oil company to make more aggressive investments in renewable energy
Oil giant Royal Dutch Shell has announced plans to increase its renewable energy investments. The company has been growing more focused on clean power in recent years and intends to divest from oil and fossil-fuels in the relatively near future. Shell has vowed to significantly reduce its carbon footprint by 2050, replacing much of its old energy capacity with clean power solutions. In order to accomplish this, Shell will be significantly increasing its investments in clean power.
Investments will show favor for wind power and clean transportation
Shell plans to invest as much as $2 billion in clean power from 2018 to 2020. This is an increase from the company’s initial plans of investing $1 billion into renewable energy by 2020. Much of the company’s investments will be seen in the wind power and biofuels sectors. Shell is also working to bolster the world’s clean transportation infrastructure. Wind energy has garnered significant attention from Shell, partly due to the prospects of offshore wind farms and their potential economic impact. Shell is also eager to invest in clean transportation in general due to trends emerging throughout the auto industry.
Shareholders want to see Shell embrace clean power
The oil company has been feeling pressure to become more environmentally friendly in recent years. Notably, much of this pressure is coming from the company’s shareholders. These shareholders are keen to see Shell adapt to a rapidly changing energy market. Concerning regarding climate change are pushing many energy companies to become more invested in clean power. Shell has been making efforts to accommodate the interests of shareholders. The company plans to expand its clean power division through its existing businesses. Shell intends to make acquisitions in the renewable energy space, where many promising companies have begun to find success.
Old energy companies will have to adapt to survive
The global energy market is beginning to evolve. The demand for renewable energy is on the rise as many countries begin to look for ways to combat climate change and reduce the emissions they produce. Companies like Shell will need to adapt in order to continue operating. Shell is just one of several old oil companies that intends to divest from fossil-fuels in favor of clean power.