Shell pivots to chemicals, renewables

Shell has set out a new strategy in which it will steadily move away from oil production while increasing its cash flow from chemicals by as much as $2 billion annually by 2030. Shell will also bolster its activities in sustainable technologies with the aim of being carbon neutral by 2050. As part of its plan, the firm will reduce its refinery network from 13 to 6 sites and cut its fossil fuel production 55% by 2030. It will invest $4 billion to $5 billion annually to increase chemical production, with emphasis on performance chemicals. The firm aims to turn 1 million metric tons (t) per year of plastic waste into chemicals by 2025 and increase the level of recycled plastics in its packaging to 30% by 2030. Shell also plans to have access to 25 million t per year of carbon capture and storage (CCS) capacity by 2035. It is involved in CCS projects in Canada, the Netherlands, and Norway. In addition to investing in its chemical arm, the firm will spend about $3 billion annually to grow its lubricants, biofuels, and electric vehicle–charging network and up to $3 billion on renewable energy activities, including green hydrogen.