[Corp. Watch] Big Oil's "shell game" on renewable energy

[Corporation Watch]

Anger as Shell Reduces Renewables Investment

  By Robin Pagnamenta

(Times of London, March 18) -- Royal Dutch Shell provoked a furious  
backlash from environmental campaigners yesterday when it announced  
plans to scale back its renewable energy business and focus purely on  
oil, gas and biofuels.

	Chief executive Jeroen van der Veer said that Shell, the world's  
second-largest non-state-controlled oil company, was planning to drop  
all new investment in wind, solar and hydrogen energy.

	"I don't expect them to grow much at Shell from here, due to  
portfolio fit and the returns outlook compared to other  
opportunities," he said, speaking at the Anglo-Dutch group's annual  
strategy briefing.

	He said that instead Shell would focus its remaining renewable energy  
investments on biofuels, where it is conducting research into "second  
generation" fuels, so far with little commercial success.

	Linda Cook, who heads Shell's gas and power business, said that wind  
and solar power "struggle to compete with the other investment  
opportunities we have in our portfolio".

	The announcement, which comes as Shell is fighting to maintain its  
commitments on dividends (which it will increase by 5 per cent this  
year) and its core oil and gas business in the face of a more than  
$100 slide in the price of crude since last summer, triggered a  
furious response from green groups.

	John Sauven, the executive director of Greenpeace UK, said that Shell  
had "rejoined the ranks of the dirtiest, most regressive corporations  
in the world ... After years of proclaiming their commitment to clean  
power, they're now pulling out of the technologies we need to see  
scaled up if we're to slash emissions."

	A spokesman for the UK Department for Energy and Climate Change said:  
"We believe renewables have a strong future as part of the UK and  
global energy mix in the fight against climate change."

	Shell has invested a total of $1.7 billion on alternative energy in  
the past five years, compared with its total capital expenditure of  
$32 billion this year.

	It holds stakes in 11 wind power projects, mostly in the United  
States, with the capacity to generate 1,100 megawatts of electricity.  
It also operates research programs into thin-film solar and hydrogen  
technology.

	Shell also said that it will maintain its spending on carbon capture  
and storage projects in Germany, Netherlands, Norway, Canada,  
Australia and America -- most of which also receive state support.