Shell announces plans to invest £25bn in UK energy
Shell will invest up to £25bn in the country’s energy systems over the next decade, according to UK country chair David Bunch.
He said: “Today I can announce that Shell UK is planning to invest between £20bn and £25 billion into the UK energy system over the next decade.”
Bunch revealed 75 per cent of the investment will be in low and zero-carbon products and services, including offshore wind, hydrogen and electric mobility.
The investment – which is subject to board approval – is intended to boost the UK’s net zero ambitions and ensure the security of domestic energy supplies.
He also called on the government to support the energy transition with a clear strategy, warning that “Shell cannot act alone.”
The chair said: “Investing this money requires urgency of action across government to deliver the enabling policy and business case frameworks. These must address both the supply and demand side of the energy transition (in areas such as hydrogen and CCS, for example). “
Commenting on the specifics of the plan, Bunch added: I will be setting out more detail on Shell UK’s plans on all this in the months ahead.”
Shell has committed to reaching net carbon emissions by 2050 across its businesses- in line with government pledges.
Prime Minister Boris Johnson will unveil updates to the UK’s energy security strategy later this month, following Russia’s invasion of Ukraine.
In the past few weeks, he has held roundtables in Downing Street with industry leaders about speeding up new projects across the energy sector.
Shell’s latest commitment to investing in the UK follows its reported decision to reconsider its Cambo oil field exit, with the government increasingly keen on North Sea oil and gas exploration.
The energy giant is not the only company with plans to boost domestic investment, with BP pledging to double its UK spending through the middle of the decade.
The vast majority of the funds will be used towards green energy sources such as offshore wind and hydrogen power.
Both comapnies unveiled bumper dividend payouts earlier this year, resulting in persistent calls from the Labour Party for a £1.2bn windfall tax.