Shell to invest up to $1 billion in renewable energies businesses

The Royal Dutch/Shell Group plans to spend up to $1 billion over the next 5 years to develop its renewable fuels businesses with a focus on solar and wind energy. Karen de Segundo, CEO of Shell Renewables, said Thursday that her unit was concentrating on solar photovoltaic and wind power, which she stressed are "the fastest growing sectors" in the global renewables industry.


By the OGJ Online Staff

LONDON, June 14 -- The Royal Dutch/Shell Group plans to spend up to $1 billion over the next 5 years to develop its renewable fuels businesses with a focus on solar and wind energy.

Karen de Segundo, CEO of Shell Renewables, said that her division was concentrating on solar photovoltaic and wind power, which she stressed are "the fastest growing sectors" in the global renewables industry, while also sizing up opportunities in biomass.

She noted that Shell had also established a company to build the group's hydrogen business, and that development work on geothermal technologies was underway.

De Segundo claimed Shell's recent tie-up with Siemens Solar GMBH, in which the group has a 33% share, had lifted Shell into the "top tier" in the photovoltaics industry. The Siemens joint venture, she said, has a 15% global market share.

Shell's key objective for the solar business is to expand in line with the market, currently growing 25%/year, she said.

In the wind business, Shell is concentrating on development and operation of wind farms, and the sale of so-called "green" electricity. Shell is involved in two trial projects with a total 8 Mw of wind-generating capacity, and is looking into projects in the UK, Netherlands, Morocco, and the US totaling 400 Mw.

De Segundo said Shell's aim in the wind business over the next few years is "to create a platform for growth from projects that typically give double-digit project returns on an equity basis."

She said Shell would invest between $500 million and $1 billion on its renewables businesses, "subject to ongoing economic review."

Meanwhile, Shell yesterday signed up SAP AG and SAPMarkets Inc. to provide solutions to advance the group's worldwide integrated e-procurement system

According to SAP, Shell has signed a memorandum of understanding that will lead to the licensing of both SAPMarkets's Enterprise Buyer and MarketSet to create a "complete global view" of its procurement activities.

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