Shell Oil Company To Think About Green Energy Deals

December 1
5:15 AM 2016

The world's second biggest publicly listed oil company, the Royal Dutch Shell, is currently studying acquisition in the green energy sector as it bows to some shareholder demands for a strategy beyond fossil fuel.

The oil company has a market value of $200 billion, produces two percent of the world's oil and gas but rapid technological change coupled with policies to protect the climate have kick-started a shift in energy markets that has put enormous pressure on oil companies to plan for a time after fossil fuels.

Shell Chief Executive Ben van Beurden said to an interview that he is convinced that in this space they will be playing an active role, a leading role and thus they will plan acquisitions in it.

Rohan Murphy, co-manager of Allianz' Global Energy Fund and Shell shareholder also said that they don't just want them to pay lip service and do it because the industry is under pressure. He also said that Shell seems to be taking the issue of a less hydrocarbon dependent world seriously and are looking at it properly rather than just talking about becoming greener.

Shell's strategy appears to diverge from French oil company Total, which is often referred to as one of the most progressive oil company when it comes to moving away from fossil fuels.

Earlier this year, Total splashed out $1.1 billion to buy Saft, which makes batteries to store solar energy, and bought a stake in AutoGrid, a startup that has developed a platform to optimize the use of home energy appliances. Total is also majority shareholder in SunPower, a manufacturer of highly efficient solar panels.

While Total is focusing on investment in green energy technologies, van Beurden hinted that Shell would become an electricity and gas provider, through the integration of utilities. He said there may be value in delivering a service, rather than being the owner of a technology.

© 2023 VCPOST, All rights reserved. Do not reproduce without permission.


Join the Conversation

Subscribe to VCpost newsletter

Sign up for our Deals of the Day newsletter.
We will not spam you!

Real Time Analytics