CLEAN ENERGY SOLUTIONS - SHELL ENERGY EUROPE - Shell Global
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2 3 THE WORLD NEEDS MORE AND CLEANER ENERGY Global energy challenge The world will need much more energy to power homes and fuel transport for a growing population with rising living To tackle climate change, energy must standards. But, to tackle climate change, increasingly come from lower-carbon sources. energy must increasingly come from lower-carbon sources. The world today is dynamic and fast-changing, and for many, energy is a defining feature Lives and livelihoods, economies and communities depend on convenient, reliable and affordable energy to thrive As the global population increases and incomes rise, demand for energy will grow Meanwhile the need to address stresses on the environment – especially climate change – has never been more important Changes need to happen across all sectors of economic activity especially in power, transport, buildings and industry – four major sectors where energy is consumed, and that produce significant energy-related CO2 emissions. Urgency, realism, innovation and collaboration are key. The global energy transition, therefore, will span decades and require unprecedented collaboration between policy-makers, leaders from business and non-governmental organisations, and consumers.
4 5 GETTING TO NET-ZERO EMISSIONS The only way to go The Paris Agreement has sent a signal around the world: CHANGING WORLD: MOVING TO climate change is a serious issue that governments, A LOWER-CARBON ENERGY SYSTEM businesses and society are determined to address. The Paris Agreement set a goal of limiting the rise in average global warming to 1.5°Celsius, and Shell strongly supports it. 2017 2050 By 2070, there is the potential for a very different energy system to emerge. To achieve the goal of the Paris Agreement, Population increases by around a third Shell believes the world is likely to have to stop adding to the stock of greenhouse gases in the atmosphere by 2070. This is a state known as net-zero emissions. But by 2070, the number of people on the planet will have risen by around a third from today to more than 10 billion, and people’s living 7.6 BILLION 9.8 BILLION standards will have improved. Together, these trends mean the world will use more and more energy. Even with a huge improvement in energy efficiency, the world is likely to be using 50% more energy by 2070, compared to today. Energy demand increases by around a third “Shell intends to lead and thrive through this transition to a low-carbon energy future. And Shell has always said that its ambition was to CO2 emissions need to reduce by around a half be in step with society, to be in step with our customers.” Ben van Beurden Shell CEO April 2020 32Gt (net CO2e emissions) 18.4Gt (net CO2e emissions)
6 7 SHELL’S ROLE IN THE TRANSITION SHELL’S NET CARBON TO A LOW-CARBON WORLD FOOTPRINT AMBITION Committed to playing our part Thrive in the energy transition We agree that action is needed now on We have already invested billions of dollars Shell is aiming to become a net-zero climate change, so we fully support the in a range of low-carbon technologies, from emissions energy business by 2050 In 2019, we set a target for 2021 biofuels, hydrogen and wind power, to electric of 2-3% lower intensity compared Paris Agreement and the need for society or sooner. vehicle charging and smart energy storage with 2016. to transition to a lower-carbon future. solutions. But addressing a challenge as big We are working to offer customers more, lower- In early 2020, we set a new target as climate change requires a truly collaborative, We’re committed to playing our part, by carbon products, from renewable electricity to for 2022 of 3-4% lower intensity society-wide approach. addressing our own emissions and helping hydrogen. We aim to reduce the carbon intensity compared with 2016. customers to reduce theirs. As the energy We believe that smart policy from government, of the energy products we sell by 30% by 2035 We track and publicly report on system evolves, so will our business, to provide supported by inclusive action from businesses and by 65% by 2050 compared with 2016, our progress towards our targets. the mix of products that our customers need. like ours and from civil society, is the best way to keeping in pace with society. With this approach, Part of the pay of our senior leaders We are reshaping our portfolio by growing reach solutions and drive progress. We want to we want to contribute to achieving a net-zero and around 16,500 staff is linked to our Integrated Gas, Chemicals, and New work together to #MakeTheFuture energy system world, where society stops adding to the amount achieving them. Energies businesses. one that enables a world of opportunities – of greenhouse gases (GHGs) in the atmosphere. for individuals, communities, countries and companies – while helping to protect the planet. *Net Carbon Footprint measured on an aggregate “well to wheel” or “well to wire” basis, from production through to consumption, on grams of CO2 equivalent per megajoule of energy products consumed; chemicals + lubricants products are excluded. Carbon Footprint of the energy system is modelled using Shell methodology aggregating lifecycle emissions of energy products on a fossil equivalence basis. The methodology will be further reviewed and validated in collaboration with external experts. MEETING THE AMBITION: POTENTIAL SOLUTIONS TO ACHIEVE OUR AMBITION BASELINE OPERATIONAL NATURAL EFFICIENCY GAS SHIFT RENEWABLE POWER DEVELOPING OUR GAS BUSINESS NEW FUELS RENEWABLE POWER BIOFUELS ELECTRIC MOBILITY CCS NATURAL SINKS ADVANCING CCS R&D IN LOW-CARBON TECHNOLOGIES SHELL VENTURES ADVOCATE CO2 PRICING POLICIES SCENARIOS THOUGHT LEADERSHIP COALITIONS AND GOV’T ADVISORY EXISTING FLARE INCREASED WIND RAÍZEN SHELL RECHARGE QUEST NATURE-BASED EXAMPLES... REDUCTION LNG POWER BIOFUELS AND NEW CCS SOLUTIONS MOTION
8 9 NO SINGLE SOLUTION, BUT MANY SHELL ENERGY EUROPE, The three-part answer: avoid, reduce and compensate YOUR PARTNER TO DELIVER CLEAN ENERGY SOLUTIONS There is no single solution to limit the rise in the global average temperature REDUCE to 1.5°C. Many different solutions are EMISSIONS CO2 CO2 urgently needed for a successful transition Promoting the use of natural gas to a low-carbon world. as the cleanest burning hydrocarbon AVOID EMISSIONS We have one of the largest natural gas trading Renewable power Shell Energy Europe provides you with a range operations in the world. This allows us to connect buyers of clean energy solutions that can help you meet Renewable energy and sellers and provide reliable and flexible gas supply certificates your decarbonisation goals. We tailor solutions to our customers. that aim to avoid, reduce or compensate for the Corporate power Natural gas plays an increasingly important role in purchase agreements emissions of your business. sectors of the economy that cannot be easily electrified. It helps lower emissions and improves air quality when it replaces coal and diesel. Gas is also an ideal partner for renewable energy sources, providing critical support AVOID in matching supply and demand. EMISSIONS CO2 Maximising the role of renewables Shell has been a pioneer in LNG for more than five decades: from finding the fields and extracting the gas, REDUCE EMISSIONS in the energy transition through to liquefaction, shipping and distribution to customers. Renewable gas We offer the integrated end-to-end power solutions you need — from generation and supply to trading To further accelerate decarbonisation of the gas system, and distributed energy systems. we offer various renewable gas solutions including biomethane tailored to customer needs. We develop wind and solar projects, produce power from existing assets and manage renewable power offtakes to meet our customers’ energy needs. COMPENSATE EMISSIONS We are improving and expanding our renewables COMPENSATE CO2 offering to customers, starting from renewable certificates through to corporate power purchase EMISSIONS Voluntary carbon credits agreements with additionality. Offering innovative solutions Reduced carbon gas for emissions that cannot be Hydrogen is one of the most abundant elements in avoided or reduced the universe – we are developing several initiatives to encourage the adoption of hydrogen in transport. Customers can purchase credits from high-quality emis- sion reduction projects to compensate any unavoidable emissions. For unavoidable emissions from combustion of natural gas, we offer a bespoke solution to bundle gas supply with nature-based carbon credits.
10 AVOID AVOID 11 CO2 CO2 EMISSIONS EMISSIONS RENEWABLE POWER RENEWABLE ENERGY All-in-one renewable energy solution CERTIFICATES An effective tool to avoid your CO2 emissions Shell Energy Europe, an established power We will guarantee that the volume of your Shell Energy Europe offers you a variety of In the UK, we can maintain 100% renewable trader and licensed supplier with 15 years of actual power consumption is the same as renewable energy certificates, which can be used fuel mix disclosure by presenting renewable trading experience, can offer you renewable the retired renewable energy certificates and to meet your renewable energy commitments. energy certificates to the regulator.* power products. provide you with the cancellation statement These include European Guarantees of Origin (GoOs), UK Renewable Obligation Certificates This is a flexible product, enabling you to We can source and supply electricity source renewable energy on a pan-European (ROCs) and UK Renewable Energy Guarantees at competitive prices and give you the Globally, we manage or global scale where alternative renewable of Origin (REGOs). opportunity to fix and unfix your commodity 5,000+ MW of power options are not available. price before your power is delivered. renewable power We can source a variety of certificates assets, including hydro, according to your needs, from the most basic You will receive a bespoke renewable wind and solar. How it works: ones to more advanced eco-labels with power contract and access your invoice additional sustainability features. and power consumption on the Shell Energy ENERGY ENERGY Customer Portal. We can take care of all the administration ENERGY around your GoOs, ensuring that they are With our renewable power offering, you can registered, tracked and retired on your behalf in be active in reducing emissions and showcase the national registry and providing you with the your commitment to tackling climate change. cancellation statement. CERTIFICATES * Our renewable energy is backed by UK-certified renewable certificates of origin, which means that all of the electricity you buy from us is matched with the equivalent amount of units from 100% renewable sources. Energy Our fuel Carbon Dioxide UK fuel mix for Source mix (%) Emissions (g/KWh) comparison (%) Coal 0 – 3.9 Renewable energy certificates document that the energy you consume comes from Natural Gas 0 – 39.4 Renewable power is a renewable sources. These certificates provide information on the asset type, location Nuclear 0 – 16.6 bundled electricity supply and production date of renewable power and thus make it possible to track and trade Renewables 100 0 37.9 with the renewable energy renewable electricity. certificate of your choice. Other 0 – 2.2
12 13 BUILDING AN INTEGRATED We are ready to meet our customers’ evolving energy needs POWER BUSINESS The changing energy system is a commercial opportunity for Shell. We are expanding our existing electricity businesses and moving into new areas. We are becoming a key player thanks to the combination of our power trading capability, our experience dealing with governments and regulators across the world, and the strength of the Shell brand. TRANSMISSION CUSTOMERS POWER PRODUCTS TRADING GENERATION AND DISTRIBUTION ELECTRIC VEHICLE (EV) CHARGING ELECTRIC MOBILITY VEHICLE (EV) CHARGING COMMERCIAL AND INDUSTRIAL ON-SITE SOLUTIONS INDUSTRIAL GIANT STORAGE TRADING AND TRANSMISSION GENERATION SYSTEMS ELECTRICITY OPTIMISATION AND DISTRIBUTION COMMERCIAL MANAGE CUSTOMER ELECTRICITY USE AND PRODUCTION SMART HOME CONNECTED HOME STORAGE RESIDENTIAL INCRE ASING E XPEC TED RE TURNS THROUGH INTEGR ATION
14 AVOID 15 CO2 EMISSIONS GROWING OUR RENEWABLE CORPORATE POWER FOOTPRINT, GLOBALLY PURCHASE AGREEMENTS The emerging preference for buying renewable power Shell produces electricity from existing projects, develops wind and solar projects and Shell Energy Europe can partner with buys more renewable power from other producers – via power purchase agreements you for the most suitable corporate (PPAs) – to meet your energy needs. power purchase agreement (PPA) for your company. You can access a fast-growing global portfolio of renewable power supplies from EXAMPLES OF SHELL’S RENEWABLE PORTFOLIO: existing and under-development assets NORTH AMERICA EUROPE owned by us and, occasionally, third parties. We can handle the power operations and Shell Energy North America manages 1,400 Power purchase agreements for 1,600 MW balancing for you. MW of hydro-electric, 2,200 MW of solar capacity from wind, solar,biomass, co- and 230 MW of windcontracted capacity. generation and hydro in the Netherlands, You can fix and manage the power price Italy, Spain and the UK. along the tenure of the PPA. Investment in Silicon Ranch Corp, A corporate power purchase agreement a leading US developer, owner and NETHERLANDS We can publicise the PPA together and increase is a long-term agreement that enables a operator of solar assets. Part of the consortium developing the the environmental attributes of your brand. corporation to purchase its electricity from Borssele 3 and 4 wind farms a specific renewable technology. (total installed capacity: 366 MW). Corporate PPAs enable you to contribute to Since 2001, development and co-ownership the development of new renewable assets. of five onshore wind projects, from California Solar projects for 24 MW total capacity to West Virginia. from solar, already active and under development. New Jersey offshore wind joint venture with EDF Renewables North America. ITALY How it works: PROFILE Power purchase agreement for 370 MW CORPORATE SOUTHEAST ASIA AND INDIA total capacity from solar and wind. PRICE-RISK Solar investment in Cleantech Solar SPAIN MANAGEMENT AND BALANCING (49%), a rapidly growing Singapore-based Power purchase agreements for 580 MW developer with more than 120 solar total capacity from biogas, solar, hydro, ELECTRICITY power projects across Southeast Asia wind and co-generation. RENEWABLE and India. PROJECT ELECTRICITY CUSTOMERS UNITED KINGDOM AND SOCIETY Power purchase agreements for 260 MW total capacity from wind and solar. RENEWABLE ENERGY CERTIFICATES, WHEN AVAILABLE KEY Updated at Existing project Under development Q3 2020
16 REDUCE CO2 COMPENSATE 17 CO2 CO2 EMISSIONS EMISSIONS RENEWABLE GAS VOLUNTARY CARBON CREDITS Providing more and cleaner gas Helping you to achieve your decarbonisation targets Shell Energy Europe leverages our expertise Shell works with environmental projects around the world that help reduce greenhouse as an established natural gas trader and gas emissions while improving the livelihoods of local communities and preserving supplier to offer renewable gas products, biodiversity and wildlife. These projects generate carbon credits that can be used including biomethane which can help you to compensate for your company’s emissions. achieve your decarbonisation goals. Depending on what is most important for your business, we have a biomethane strategy that How it works: Compensating for your CO₂ emissions can work for you – from supplying certificates only, to gas with transport and corresponding certificates. In January 2020 Shell announced an important step towards decarbonising heavy-duty road We can offer you biomethane without the transport in Germany by extending its German WHEN CO₂ EMISSIONS ...THEY CAN BE need to alter your physical infrastructure or LNG station network to 35-40 sites and supplying it ARE HARD TO ABATE... COMPENSATED THROUGH PROJECTS IN THE SHELL gas purchase agreements. with carbon-neutral LNG fuel. The initiative includes GLOBAL CARBON CREDIT PORTFOLIO... sourcing biomethane produced from wet manure, iomethane can help you achieve B agricultural or municipal waste, building gas complete decarbonisation without the liquefaction capacity and the distribution of carbon need for additional capital investment. neutral LNG through Shell’s LNG station network. ...WHICH CAN BE RETIRED ...THAT ARE INDEPENDENTLY TO DEMONSTRATE AN VERIFIED TO CAPTURE AMOUNT OF CO₂ OR REDUCE CO₂ How biomethane works: EMISSIONS HAVE BEEN EMISSIONS AND CREATE COMPENSATED FOR. CARBON CREDITS... MANURE AND SLURRY CO2 1 CARBON CREDIT REPRESENTS THE AVOIDANCE POWER OR REMOVAL OF 1 TONNE OF CO₂ CAPTURE DIGESTATE FEEDSTOCK FOOD AND AMENITY WASTE GAS GRID HEAT Voluntary carbon credits are a recognised mechanism that allows individuals and companies to invest in environmental projects that contribute to reducing the amount of CO₂ in the atmosphere. Some offer ANAEROBIC DIGESTER broader value to society, including improved social livelihoods and biodiversity, clean water and air CROPS AND BIOGAS UPGRADED RESIDUES TO BIOMETHANE TRANSPORT FUELS quality while balancing peoples’ carbon footprints.
18 CO2 COMPENSATE 19 EMISSIONS SHELL’S GLOBAL PORTFOLIO PROJECT SELECTION OF VOLUNTARY EMISSION Criteria used to determine a project’s suitability for inclusion in the Shell Global Offset Portfolio. REDUCTION PROJECTS Adherence to approved carbon standards Environmental impact beyond CO₂ reduction Social benefit to the local community SHELL’S GLOBAL OFFSET PORTFOLIO Reputation and experience of project developer Government support for project www.shell.com/environmentalproducts NEPAL 17 CLEAN COOKING SOLUTIONS FOR INDIA DISADVANTAGED 16 HIMALAYAN OAK HOUSEHOLDS RESTORATION 18 HOUSEHOLD CLEAN COOKING SOLUTIONS CHINA 19 RURAL CLEAN 22 XINJIANG MAKIT COOKING SOLUTIONS ALIGNMENT WITH UN SUSTAINABLE 23 QINGHAI 24 XINING CITY DEVELOPMENT GOALS (SDGs) 25 HAIDONG 26 PUZHEN 27 XINING CITY 28 SAIHANBA MECHANICAL USA TURKEY 22 32 28 FORESTRY FARM 7 HASANBEYLI 50 MV 7 35 24 1 GREENTREES 1 WIND POWER PLANT 23 25 30 29 JIANGXI REFORESTATION PROJECT 17 18 29 34 30 QIANXINAN 16 19 26 27 33 GUATEMALA 15 31 2 CONSERVATION 2 GHANA CHINA COAST 14 3 8 REFORESTATION OF 8 20 31 FUSUI BIOMASS DEGRADED FOREST 32 JINGYUAN COUNTY SOLAR RESERVES NICARAGUA 9 13 33 THREE GORGES SOLAR 3 AMAYO WIND POWER 10 12 21 34 GANSU GANZHOU PROJECT, PHASES I & II 5 INDIA DISTRICT SOLAR 4 14 TIST PROGRAM 6 UGANDA 11 35 SHANDAN DONGLE BEITAN SOLAR PROJECT 9 TIST PROGRAM INDIA PERU 15 BREATHING SPACE 4 CORDILLERA AZUL IMPROVED 5 NII KANITI: COOKING STOVES COMMUNITY FOREST DR CONGO INDONESIA MANAGEMENT WITH 21 KATINGAN MENTAYA 10 MAI NDOMBE REDD+ INDIGENOUS KENYA COMMUNITIES 13 KASIGAU 6 TAMBOPATA-BAHUAJA CORRIDOR REDD+ BIODIVERSITY RESERVE CAMBODIA MALAWI KENYA 20 SOUTHERN 11 IMPROVED KITCHEN 12 TIST PROGRAM CARDAMOM REDD+ CONSERVATION REFORESTATION AFFORESTATION RENEWABLE ENERGY HOUSEHOLD DEVICES PROJECT TYPES Saihanba Mechanical Forestry Farm Afforestation and Sequestration Project, China, Asia. FORESTS WETLANDS RENEWABLES HOUSEHOLD CLIMATE NATURE PEOPLE ECONOMY DEVICES € Reforestation Peat restoration Wind Cook stoves Climate mitigation Biodiversity Job creation Food security Avoided forest conversion and protection Clean water provision Climate adaption Clean air and water Medicine and health Energy security Natural forest management and sanitation Wildlife protection Water security Avoided woodfuel Fire management Qinghai Afforestation Project, China. All information taken from project developers’ materials, correct as of October 2020.
20 CO2 COMPENSATE 21 EMISSIONS PROJECT PORTFOLIO HIGHLIGHTS Shell works with a carefully selected group of environmental project developers whose projects generate To find out more about our projects: voluntary carbon offsets. Shell is also becoming a project developer partnering with key players across the world. www.shell.com/emissionsreductionprojects CORDILLERA AZUL NATIONAL PARK 2.5 MILLION QINGHAI AFFORESTATION PROJECT 767,000 CARBON REDD+ PROJECT CARBON CREDITS CREDITS GENERATED CHINA, ASIA GENERATED ON ON AVERAGE PERU, SOUTH AMERICA DEVELOPED BY SHELL AND CLIMATE BRIDGE EACH YEAR AVERAGE EACH YEAR DEVELOPED BY CENTRO DE CONSERVACIÓN, INVESTIGACIÓN Y MANEJO DE ÁREAS PROTEGIDAS (CIMA) The Cordillera Azul National Park is located in Peru’s high forest between the Andes and the Amazon Basin. The Qinghai Afforestation project is one of three projects aggregated under the same name which are The project supports a rich ecosystem of indigenous biodiversity, high-carbon stock forests and a multicultural located on the Tibetan Plateau in northwest China. Qinghai suffers from desertification – the transformation population of more than 250,000 people living in communities around the park boundaries. of arable, hospitable land into a desert. Key causes include deforestation, overgrazing and overuse of water. The project protects against illegal logging and the encroachment by farmers. The project restores degraded Tree planting began in 2014. Shell’s involvement officially began in December 2018 when Shell began lands with agroforestry systems (cacao and coffee) which provides income for local communities. The project working with the project to help it become a certified carbon credit project. The project was verified by also protects the unique biodiversity of the area which is home to around 6,000 plant species and more than VERRA for the Verified Carbon Standard and CCB (Climate, Community and Biodiversity) Standards and 180 species of fish. the first issuance of credits was completed in March 2020. IMPACT TARGETS FOR 2021 PROJECT COMMITMENT TO PROJECT HIGHLIGHTS Qinghai is the fourth largest province in China by land UN SUSTAINABLE DEVELOPMENT area. Most of the population work in agriculture, primarily GOALS (SDGs) irrigation farming and cattle and sheep herding. 2.5 million carbon credits generated on Providing additional benefits 767,000 carbon credits generated each year Consequently, agriculture is also the primary form of land average each year THIS PROJECT MEETS THE FOLLOWING SDGs: The project crediting period started in 2014 use. Desertification has degraded the quality of land, soil The project crediting period started in 2008 and water, and has had negative effectives on the quality 764,900 hectares will be managed significantly of life and social-economic development for local residents. 1.6 million hectares of threatened forest protected better and will experience improved biodiversity conservation 28 high conservation value species protected 13,862 hectares of forest will be grown as a result of 716 jobs supported, 30% of which are held by women the project 25 sustainable enterprises created or supported Protection of 2 Critically Endangered species Helped 6 communities to improve their schools, More than 10,000 jobs created to plant trees and benefiting 5,000 people maintain the forests All information taken from project developers’ materials, correct as of October 2020. All information taken from project developers’ materials, correct as of October 2020.
22 CO2 COMPENSATE 23 EMISSIONS REDUCED CARBON GAS BENEFITS FOR YOUR BUSINESS A step further in your decarbonisation journey Shell Energy Europe, your trusted partner to deliver clean energy solutions for you To help you offset the unavoidable emissions that are produced by natural gas combustion at your site, we can tailor a solution that is carbon neutral. SHOWCASE Your natural gas supply is bundled with independently CLIMATE LEADERSHIP verified carbon credits to compensate greenhouse gas Climate leaders are those who are pushing the emissions from gas combustion. limit for what companies or organisations can do to combat climate change. We use emission factors published in the national inventory reports to calculate your emissions from combustion of natural gas. We guarantee that the consumed volume of natural gas matches the volume of credits and provide you with a CO₂ APPEAL TO YOUR compensation certificate. CUSTOMERS AND EMPLOYEES We supply natural gas with You will be able to use all available marketing materials Differentiate from less-responsible brands, create new high-quality, voluntary carbon related to our global portfolio of nature-based projects to sustainable products, inspire your workforce to engage credits from nature-based add value to your brand. with carbon reduction activities in-house. projects around the world. Illustrative example: MEET YOUR GREENHOUSE For every 100 GWh of energy produced by burning natural gas, 20,400mt CO₂e is emitted.* GAS EMISSIONS COMMITMENTS These unavoidable emissions can be compensated through the retirement of 20,400 nature-based Whatever your decarbonisation targets are, we can carbon credits. A certificate documenting the removal or avoidance of the CO₂ emissions will be issued. provide you with tailor-made clean energy solutions that help you avoid, reduce and/or compensate your emissions. 20,400mt CO2e Certificate CREATE LONG-TERM SUSTAINABILITY VALUE FOR YOUR BUSINESS Investing in clean energy solutions, you will 100 GWh help to shape a more sustainable energy future. *Conversion rates may vary by country.
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