UPDATED: Shell planning low-carbon job cuts and changes to hydrogen mobility - H2 View
UPDATED: Shell planning low-carbon job cuts and changes to hydrogen mobility | Power | H2 View
Shell has confirmed it plans to cut 15% of its low-carbon division workforce and make changes to its hydrogen mobility plans as it looks to boost profits.
Earlier today (October 25), Reuters, reported Shell confirmed staff cuts and organisational changes will come after Wael Sawan took to the role of CEO in January (2023) and promised to revamp the oil and gas major’s energy transition strategy.
A Shell spokesperson has now told H2 View, it will cut 200 jobs next year (2024) and has placed 130 positions under review as part of a plans to reduce headcount in the low-carbon business unit – but added some of those roles will be integrated into other areas of the company.
“We are transforming our Low Carbon Solutions (LCS) business to strengthen its delivery on our core low-carbon business areas such as transport and industry,” Shell said.
It comes after Shell in June (2023) said it would invest $1bn a year into hydrogen and carbon capture and storage (CCS) in 2024 and 2025, with Sawan saying he was confident the company could “win” in the molecular space.
Read more: Shell to invest $1bn a year in hydrogen and CCS in next two years
This July (2023), Shell reported its lowest quarterly profit in nearly two years, raking in a mere $5.1bn compared to $11.5bn over the same period in 2022, citing falling energy prices.
At the time of releasing its Q2 results, Sawan said, “As we deliver more value with less emissions, we will continue to prioritise share buybacks, given the value that our shares represent.”
Shell’s spokesperson also told H2 View it remains committed to investing in “viable low-carbon business models,” and plans to invest $10-15bn across 2023 and 2025 to support biofuels, hydrogen, EV charging and CCS.
Continuing a shift away from light-duty hydrogen mobility
A spokesperson also said the company would be continuing to move its hydrogen mobility focus away from light-duty vehicles to heavy duty.
Previously speaking on a H2 View webinar, Paul Bogers, Vice-President of Hydrogen at Shell, said the company had closed UK hydrogen refuelling stations due to operational challenges and lack of use.
Read more: Shell opens up on UK hydrogen refuelling station closures in H2 View webinar
“We’ve always been willing to lean in and try things out. That included putting hydrogen refuelling sites on our forecourts in the UK,” Bogers said. “We found it really challenging to operate them and do that reliably.”
“In the UK there is now a lot more enthusiasm and momentum around zero-emission in heavy goods vehicles (HGVs), which will be a combination of battery electric as well as hydrogen trucks.”
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