Shell is scaling back its offshore wind investments and restructuring its power division following a comprehensive review.
This shift aligns with CEO Wael Sawan’s strategy to focus on high-return activities, particularly in oil, gas, and biofuels, while reducing costs in low-carbon and renewable sectors.
A Shell spokesperson confirmed that the company will not lead new offshore wind developments but remains interested in offtakes with acceptable commercial terms and may consider equity positions in compelling investment cases.
The decision comes as the offshore wind sector faces rising costs and supply chain issues.
This move follows similar strategies by BP and Equinor, which have also reduced renewable investments amid pressures for higher returns.
Shell will continue its existing offshore wind projects but has withdrawn from several, including those in South Korea and the US.
The company will restructure its power division into two units: power generation and trading, aimed at improving focus and delivery.
Greg Joiner will lead Shell Power, and David Wells will head Shell Energy, which will focus on power sales and battery storage development.
Shell currently operates 3.4GW of renewable capacity globally and sold 279 terawatt hours of electricity in 2023.
Shell’s strategy also includes expanding its liquefied natural gas division and stabilising oil production by the end of the decade, while scaling back in offshore wind, solar, hydrogen, and some oil and gas production.