In an interview with the Financial Times, Shell's Chief Executive, Wael Sawan, has outlined the company's intention to take a more selective approach to its investments in renewable projects. Sawan emphasized that Shell would no longer assert leadership in segments of the energy transition where it lacks the necessary competencies and capabilities.
For areas where Shell does not possess a unique capability, such as renewable power generation, the company intends to seek partnerships or refrain from investment altogether, according to Sawan. He explained, “This is really much more of a selective approach to where we are going to lead.”
Wael Sawan assumed the role of CEO in January and has since set forth plans to streamline the less profitable aspects of the company's low-carbon portfolio, which had been established by his predecessor, Ben van Beurden.
Sawan stated to the Financial Times, “We need to get leaner, we need to get more focused, we need to get more disciplined. That inevitably will include choices around where we are going to operate but also importantly how we operate.”
Last month, Shell announced its decision to reduce its workforce in the low-carbon solutions division by cutting 200 jobs, while an additional 130 positions are under review. This move represents at least 15% of the unit's workforce.
These workforce adjustments followed a strategic decision by Shell to shift its focus away from hydrogen technology for passenger cars and concentrate instead on hydrogen applications for heavy goods vehicles and industrial purposes.
Furthermore, Shell is currently in the process of constructing Europe's largest green hydrogen production plant in the Netherlands, indicating the company's continued commitment to renewable energy initiatives.