Royal Dutch Shell plans to budget $1 billion per year for its New Energies division. The major oil and gas firm is one of a several E&P firms that see the need to transition toward cleaner energy forms. Speaking at the World Petroleum Congress taking place in Istanbul, Shell CEO Ben Van Beurden said that the $1 billion per year for clean energies will help speed a transition toward renewable power and electric cars.
Van Beurdenwent on to say that he sees particular opportunities in hydrogen fuel cells, LNG and next-generation biofuels for air travel, shipping, and heavy freight. He also said that due to the intermittent nature of wind and solar energy, power plants fired by natural gas will maintain a long-term role.
Developing countries will continue to require fossil fuels to develop industries such as steel, cement and chemicals because they need a heat intensity that cannot come from electricity alone, Van Beurden said.