Bio Power Sources Are Shell's Favored Alternative Energy Source For The Larger Future Investments

Shell has no intention of investing in renewable technologies such as wind, solar, and hydro power since these are not commercial, stated the Anglo-Dutch oil company today. It plans to invest more in biofuels which environmental groups blame for driving up food costs and deforestation. The company reiterated that it would focus on creating cleaner agendas of using normal fuels, for instance carbon capture and sequestration (CCS) technology. It was hoping to use CCS to reduce emissions from Shell's questionable and energy-intensive oil sands projects in north Canada.

It was declared by the company that no attractive investment opportunities were offered by alternative technologies, such as the RV solar panel. “If there exists no investment chances that compete with other projects, we cannot inject cash into it,” stated Linda Cook, Shell's executive director of gas and power.

Shell expounded biofuels fitted its core business of providing fuels, logistics, trading and branding.

Cook also said: “It now seems as if biofuels are one alternative closest to what we offer in Shell. Solar and Wind power are fine, however, everyone will continue to investigate other prospects in which to add to their investment portfolios, even though there are other markets with big packages. The increasing of its dividend payments this year to $10bn, or about 5%, was also confirmed by the company. Friends of the Earth condemned Shell for halting support in alternatives like wind for biofuels.

"Shell is supporting the wrong party in terms of renewable energy biofuels that lead to more emissions than the gas and diesel they displace," the campaign group clarified. "Shell is at least being a bit more truthful about the fact they seem to be a fossil fuel company. It looked at limitations that the green wash used some years ago had.". Shell possesses some 550MW of wind farm capacity around the globe, ample energy to supply power to a town the size of Sheffield when the wind is blowing. Last year, it pulled out of the 1,000MW London Array project, the partnership to build what would be the planet's biggest offshore wind farm, in the Thames Estuary. Former project partner E.ON has yet to choose to resume with the 3bn investment required.

Outgoing Head honcho Jeroen wagon der Curve admitted the company had endured some "technology baths" during the past when it backed unprofitable technologies. The Firm has foretold that by 2025, eighty percent of energy will come from normal fuels and twenty p.c. from alternative power sources like the RV solar panel. Yet it is spending just over 1 percent of its budget on alternative technologies.

Over the past five years, only 1.7 billion dollars of the 150 billion it invested has been allotted towards alternative sources of energy such as the RV solar panel. Cook indicated that at one stage the company only invested 1% of its budget on liquefied natural gas, which is now a massive part of its business.

The company claimed it would raise debt levels to maintain dividend payments and its spending programme. Wagon der Curve reiterated that energy needs over the long haul were healthy and that oil prices would recover.