Shell Scales Back Offshore Wind Investments and Splits Power Division

Shell has announced it will scale back new offshore wind investments and split its power division following an extensive review of its business. The review, launched in 2023, aimed at reducing costs under CEO Wael Sawan, prioritises activities with the highest returns. This strategy shift has resulted in decreased spending on low-carbon and renewable businesses, with increased focus on oil, gas, and biofuels.

Shell has stated that it will not lead new offshore wind developments but will remain interested in offtakes where commercial terms are favourable. The company is also cautiously open to equity positions if a compelling investment case arises.

Additionally, Shell confirmed that it would continue to develop offshore wind projects already underway, despite having retreated from several recent offshore wind initiatives in South Korea and the USA.

In addition to scaling back offshore wind investments, Shell will reorganise its Shell Energy unit, which includes renewables, power generation, and supply to customers. The unit will be split into two separate entities: Shell Power, focused on power generation, and Shell Energy, focused on trading. Joiner will head Shell Power, while David Wells will lead Shell Energy.