Shell
Shell’s target is to become a net-zero emissions energy business by 2050. That means reducing emissions from their operations, and from the fuels and other energy products Shell sells to customers. It also means capturing and storing any remaining emissions using technology or balancing them with offsets.
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Sustainability Report
About Shell
Shell’s target is to become a net-zero emissions energy business by 2050.
For Shell, a net-zero emissions energy business means reducing emissions from their operations, and from the fuels and other energy products they sell to customers. It also means capturing and storing any remaining emissions using technology or balancing them with offsets.
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in October 2021, Shell set a target to reduce absolute emissions by 50% by 2030, compared to 2016 levels. This covers all emissions in Scope 1 and Scope 2. Short-, medium- and long term targets have also been set to reduce the carbon intensity of energy products, i.e. Scope 3. These include 20% reduction by 2030, 45% reduction by 2035 and 100% reduction by 2050.
Shell claims 18% reduction of Scope 1 and 2 emissions in 2021. In addition, Shell linked the pay of more than 16,500 staff to carbon intensity targets to reduce the carbon intensity of our energy products by 6-8% by 2023, compared with 2016. About 15% of the annual bonus for applicable workers is now tied to energy transition and low carbon products.
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Shell’s net carbon intensity (NCI) provides an annual measure of the life-cycle emissions intensity of the portfolio of energy products sold. It is the average intensity, weighted by sales volume, of the energy products sold by Shell. It is tracked, measured and reported using the Net Carbon Footprint (NCF) methodology. It is expressed as the grams of CO2 equivalent per megajoule (gCO2e/MJ) produced for each unit of energy delivered to, and used by, a consumer.
Shell’s net carbon intensity in 2021 was 77 gCO2e/MJ. Although this is a 2.7% increase from the previous year, it represents a 2.5% reduction from the 2016 reference year, which means that Shell’s first short-term target of a 2-3% reduction in NCI by the end of 2021 was achieved.
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Dedicated shore power projects or roadmaps have not been identified, except for a single project in Singapore to power Shell’s electric catamarans. Norway-based Zinus, a supplier of shore power products and autonomous solutions for ports and vessels, has secured a contract with Penguin Shipyard International in Singapore for the delivery of a fully automatic charging solution to three electric passenger catamarans Penguin is building for Shell. This will enable fully electric and sustainable sea transportation for workers going to and from Shell Energy and Chemicals Park in Singapore. The power delivery system can deliver a current of 4400 A, approximately 3 MW.
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Shell is producing and supplying low-carbon fuels such as biodiesel, bioethanol, renewable natural gas (also known as RNG, biogas or biomethane), renewable diesel (also known as hydrotreated vegetable oil or HVO) and sustainable aviation fuel to help lower the carbon emissions from transportation. These fuels can be blended with existing fuels, such as gasoline and aviation fuel.
The Raízen joint venture (Shell interest 44%, not Shell-operated) in Brazil is one of the world’s largest biofuel producers, with one of the lowest-CO2 biofuels available today. In 2021, Raízen produced around 2.5 billion litres of ethanol from sugar cane. In 2021, Raízen’s Costa Pinto mill in Brazil also produced 19 million litres of second-generation cellulosic ethanol made from inedible agricultural waste or forestry products.
In September 2021, Shell announced a final investment decision to build an 820,000-tonnes-a-year biofuels facility at the Energy and Chemicals Park Rotterdam, the Netherlands, which was formerly known as the Pernis refinery.
In 2021, around 9.1 billion litres of biofuels went into Shell’s petrol and diesel worldwide, which included 3.2 billion litres through Shell’s joint venture Raízen on an equity basis. In 2020, around 9.5 billion litres of biofuels went into Shell’s petrol and diesel worldwide.
Read more about Shell biofuels here.
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Shell is investing in producing decarbonised hydrogen for their own facilities and, in the future, for customers in industry and mobility where direct electrification is challenging.
In 2021, Shell started production of the electrolyser at Shell Energy and Chemicals Park Rheinland in Germany. The 10 megawatts (MW) proton exchange membrane (PEM) electrolyser uses renewable energy to produce up to 1,300 tonnes of decarbonised hydrogen a year, which is used to make lower-carbon fuels at the park.
Shell’s joint venture Zhangjiakou City Transport and Shell New Energy Co., Limited (Shell interest 47.5%) started up a hydrogen electrolyser in China with 20 MW production capacity in January 2022.
Expansion of hydrogen refuelling stations remains challenging and time-consuming when compared to the expansion of electrical (heavy-duty) vehicles. By the end of 2021, there were only around 50 hydrogen refuelling stations at Shell-branded outlets in the USA (California), Canada, Germany, the Netherlands and the UK.
Read more about hydrogen at Shell here.
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Shell is developing a great deal of carbon capture and storage projects to accommodate balancing and offsetting emissions from energy products in the long-term. All these projects are situated in Europe, Canada and Australia. The biggest plant is 6 mtpa (metric tonnes per annum), equating to roughly 0.5% of Shell’s total footprint. Read more about Shell CCS projects here.
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In 2021, Shell reshaped and restructured its organisation to place our energy transition strategy at the heart of the organization. Governance is now designed to effectively manage the energy transition.
The primary body for sustainability governance at Shell is the Safety, Environment and Sustainability Committee (SESCo). It is one of four standing committees of the Board of Directors of Shell. The SESCo reviews the practices and performance of Shell with respect to safety, environment including climate change, and sustainability. In February 2022, Shell announced the new role of Strategy, Sustainability and Corporate Relations Director. The new director is a member of Shell’s Executive Committee.
Frequently Asked Questions
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