Shell announced plans to sell approximately 500 of its retail locations each year in 2024 and 2025, aiming to adapt to the increasing demand for electric vehicle (EV) charging options.
“We are upgrading our retail network, with expanded electric vehicle charging and convenience offers, in response to changing customer needs,” Shell detailed in its recently updated energy transition strategy.
London-based Shell plans to expand its public EV charging infrastructure, targeting an increase to 200,000 chargers by the end of the decade, up from the current 54,000. This expansion focuses on China and Europe, regions where Shell already operates a substantial portion of its charging stations and where demand for EV infrastructure is rapidly growing.
Shell anticipates an internal rate of return of 12% or higher from its growing EV charging business, though specific details regarding the retail sites slated for divestment were not disclosed. Huibert Vigeveno, who leads Shell’s downstream, renewables, and energy solutions business, noted that divesting 500 sites annually corresponds to about 4% of Shell-operated locations, reports Bloomberg.
Additionally, Shell revised its energy transition strategy last week, modifying its carbon emissions reduction goals for the next decade. However, it reaffirmed its commitment to achieving net-zero emissions by 2050.
The company also set a new objective to lower emissions from the use of its oil products by 15% to 20% by 2030, relative to 2021 levels. Shell highlighted that a significant portion of its oil products is utilized in the transport sector, with up to 20% going towards non-energy uses like lubricants and chemicals, which do not generate customer emissions through combustion.
