Shell has launched a number of initiatives in Canada to provide cleaner energy to customers and use energy more efficiently in our operations. This includes fostering new technologies like carbon capture and storage through the Quest CCS project, and producing cleaner hydrocarbons such as natural gas.
In 2016, Shell established its New Energies business to pursue three main areas of opportunities in the energy transition: new fuels for transport, such as biofuels and hydrogen; renewable power, where wind and solar energy can partner with gas to manage intermittency; and connecting customers with new business models for energy, enabled by digitalisation and the decentralisation of energy systems.
Globally, we aim to grow investment in New Energies to about $1 billion a year by the end of the decade. We plan to invest in a measured way to gain insights into where we see the potential for material businesses in time. Our focus will largely be on capital-light plays, in areas that share aspects with our core businesses, such as location and ease of fit with existing infrastructure.
In Canada, Shell is actively exploring opportunities where the commercial value is clear in areas such as biofuels, hydrogen, renewable power and customer solutions enabled by digital technology. These areas were chosen because of market materiality or fit with existing Shell competencies.
For example, in June 2017 we announced an agreement granting Shell exclusive development and licensing rights for SBI Bioenergy’s biofuels technology. Edmonton-based SBI has a patented process that can convert a wide range of waste oils, greases and sustainable vegetable oils into lower carbon drop-ins for diesel, jet fuel and gasoline. Under the agreement, Shell and SBI will work together to demonstrate the potential of the technology and, if successful, scale up for commercial application. Learn more about the agreement and the work SBI does here.