Plagued by Plunging Profits, Shell Creates Renewable Energy Division

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Plagued by Plunging Profits, Shell Creates Renewable Energy Division

Some industry stalwarts, like Exxon, are in outright denial. Others, like coal king Peabody Energy, can’t help but feel acute pain as their once-impenetrable fortresses crumble. Others, like Shell, are investing in the future.
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Plagued by Plunging Profits, Shell Creates #RenewableEnergy Division. http://bit.ly/22qMpka #Energy by @SaraGBM

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Green Builder Media CEO, Sara Gutterman

Green Builder Media

Thursday, May 26, 2016 - 5:00pm

CAMPAIGN: Energy Solutions

CONTENT: Blog

Europe’s largest oil company, Shell, sees the writing on the wall. The Anglo-Dutch conglomerate has determined that it is not going to rely only on dirty fossil fuels for its livelihood. Rather, it’s going to catch a wave on the market tide and invest in the burgeoning clean energy revolution.

The decision was made shortly after London-based economists warned international oil companies that they must transform their business models and determine a way to mitigate the risk of ‘stranded assets’, or face a “short, brutal end within 10 years."

According to Paul Stevens, Professor at University College London and Fellow at the Chatham House think-tank, “the prognosis for the IOCs [international oil companies] was already grim before governments became serious about climate change and oil prices collapsed … their old business model is dying.”

In response to this bleak diagnosis, Shell recently announced that it has developed New Energies, a renewable energy division, which will combine the company’s existing hydrogen, biofuels, and electrical activities with large-scale investments in wind and solar power.

Group chief executive, Ben van Beurden, claims that he wants shell to be on the leading edge of the transition to a low-carbon economy, so he has allocated $1.7 billion in capital investment and a $200 million cap-ex budget to New Energies. 

Read the full story on the Shell Renewable Energy Division...

Keywords: Energy | Energy Efficiency | Environment | Green Builder Media | Renewable Energy | Sara Gutterman | Shell | Shell Renewable Energy Division

CAMPAIGN: Energy Solutions

CONTENT: Blog

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