Shell won't develop new offshore wind projects, cuts oil expolation divison
It comes as Shell, along with rival energy company BP, has backtracked on some key climate targets to the dismay of environmental campaigners, putting more emphasis on oil and gas to boost profits.
"We will be focusing on maximising the value of our existing renewable generation platforms," said a spokesperson for the company.
"While we will not lead new offshore wind developments, we remain interested in offtakes where commercial terms are acceptable and are cautiously open to equity positions," the spokesperson added.
The move follows a review of its power division, Shell Energy, which will be split into two connected businesses -- one focused on power generation and the other on trading and customer-focused activities.
Offshore wind is one of the major sources of renewable energy that Europe is counting on to decarbonise electricity production, but in recent years projects have been mired by soaring costs and supply chain issues.
At the end of August, Shell announced it was cutting hundreds of jobs from its oil and gas exploration division as part of cost-cutting.
The group also announced Thursday that it will merge its UK offshore oil and gas assets with those of Norway's Equinor to create a new jointly owned company.
Based in Aberdeen, Scotland, the joint venture "will be the UK North Sea's biggest independent producer", the energy sector heavyweights said in a statement.
Earlier in the year, Shell diluted its climate targets, including on "net carbon intensity", a measurement of emissions produced by each unit of energy sold.
The group had said net carbon intensity would be cut 15-20 percent by 2030 compared to 2016 levels. That marked a dilution from its previous 20-percent target.
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