Shell, which is the largest oil company in Europe, has established a division to invest in renewable and low-carbon power, according to The Guardian.
The New Energies division, the story said, will consolidate the company’s hydrogen, biofuel and electric initiatives. It also will be the base upon which a move into wind power will be mounted. The capital investment in New Energies is $1.7 billion and its annual capital expenditures will be $200 million. That, the story points out, is less than 1 percent of the $30 billion the company spends on oil and gas activities.
The new division will run alongside Shell’s Integrated Gas division. The story says that a public announcement of the move is expected on June 7.
Last month, an Administrative Law Judge at the Federal Energy Regulatory Commission (FERC) issued an Initial Decision that found that Shell Energy North American defrauded California during negotiations conducted during the energy crisis of May, 2001 on a long-term power contract.