Powering homes and businesses, electrifying transport, progressing renewable generation and providing reliable electricity. Here’s what we achieved in 2019…

As you read this, United Nations delegates from nearly 200 countries have met in the Spanish city of Madrid. The so-called Conference of Parties summit, or COP25, ends a year that has seen climate protests intensify around the world.

Shell shares this sense of urgency. Climate change must be tackled and while there may not always be unanimous agreement on the steps needed to do so, we can firmly agree on this: no single party can do it alone. It will require unprecedented levels of collaboration.

So what is Shell doing? One of my main goals for Shell’s New Energies division has been to build a lower-carbon power business that can thrive through the energy transition. And 2019 was the year that we continued to move in that direction.

Electricity for homes and businesses

In Great Britain, we started the year by rebranding First Utility to Shell Energy Retail and finished it by acquiring Hudson Energy. Shell is now serving 100% renewable electricity to nearly a million UK households.

That effort was mirrored on the other side of the world, where we acquired ERM Power, one of Australia's largest energy retailers for businesses and industry. Through these three businesses we are delivering electricity direct to homes and businesses. We also announced a 49 per cent investment in ESCO Pacific, one of the biggest solar developers in Australia. This, alongside the acquisition of ERM Power, means Shell will be well positioned to supply more and cleaner energy to utility, commercial and industrial customers throughout Australia.

But as energy systems change, so will storage capabilities and, in turn, customer choice. That’s why earlier this year we bought sonnen, a Germany company providing battery storage systems and solar panels for homes.

sonnen’s customers can power their homes by self-generated solar electricity – regardless of the weather or time of day. And their systems are selling across the USA, Australia and Germany.

We also acquired Limejump, a UK-based digital electricity trading company that manages a portfolio of batteries. Limejump makes it possible to bring more cleaner energy - from a wind turbine, solar farm or hydro power plant – onto the power grid.

"Speed and substance", "Think Big", "Strong Bonds": Inside the Limejump offices in London

This was the year we also made progress in renewable generation, serving many more customers through our partner companies Silicon Ranch and Cleantech Solar. In November we announced the acquisition of EOLFI, a French company specialised in floating wind development.

All these things propel us closer towards Shell’s broader Net Carbon Footprint ambition. This is our aim to reduce the carbon intensity of the energy products we sell - by 20% by 2035 and 50% by 2050. Achieving it will, over time, radically change our company.

Changes in mobility

But electricity’s future will not just be decided in homes, offices, workplaces and factories. It will also be decided on the world’s roads. Transport currently accounts for around 20% of energy-related carbon dioxide emissions.

2019 was the year Shell acquired Greenlots, a Los Angeles-based electric vehicle (EV) charging company bringing charging facilities across North America.

The Greenlots deal came after our acquisition of New Motion, an electric charging company offering European drivers access to more than 55,000 private electric charge points and a network of more than 118,000 public charge points in 30 countries.

"Electricity’s future will not just be decided in homes, offices, workplaces and factories. It will also be decided on the world’s roads...."

As we scale both Greenlots and New Motion, we hope to encourage further adoption of electric cars across Europe and the USA. There is huge potential here. The number of EVs on the world's road could increase to 125 million in 2030, compared to just three million today, according to industry predictions.

Of course not everyone has yet switched to electric. That is why we are offering drivers in the UK and Netherlands options to offset carbon emissions from more traditional fuels. This year Shell pledged its support to a growing number of conservation and reforestation projects around the world.

Energy access

We moved closer towards our commercial ambition to provide reliable electricity to 100 million people primarily in Africa and Asia by 2030.

In November we announced our planned investment in PowerGen, a microgrid company with a mission to "build the energy system of the future in Africa", where around 600 million people live without access to any electricity.

We secured an almost 20% stake in Orb Energy, a rooftop solar provider in India and Africa (pictured above). And we announced that we will invest in d.light, a company based in Kenya that distributes solar home systems and products to homes and businesses in more than 70 countries. These investments mean new possibilities. Possibilities that will transform lives and bring new opportunities.

Towards a new decade

So as we close the year, let's hope for clear direction ahead of a crucial 2020 in which many governments have agreed to update their climate pledges. For change – real, future-defining change – will require unprecedented levels of international collaboration. It is a responsibility that falls on all of us. And in the decade ahead, Shell will continue to play its part. 

Mark Gainsborough, Executive Vice President - New Energies at Shell (originally published on Linkedin)