Shell will invest $1 billion in hydrogen and carbon capture and storage technologies.

Oil giant Shell has announced plans to invest up to $1 billion annually in hydrogen and carbon capture and storage (CCS) technologies from 2024 to 2025, as an important step towards low-carbon development, the

World Energy Network reported on June 19. Huibert Vigeveno, Head of Downstream at

Shell, highlighted the need for stronger policy and regulatory support to facilitate the development of these technologies. Vigeveno points to the Inflation Reduction Act (IRA) in the United States, which provides tax breaks and subsidies for green hydrogen production and CCS projects.

While not revealing the exact details of the allocation of funds to hydrogen and CCS, Vigeveno mentioned the Hydrogen 1 project in the Netherlands, which is a hydrogen production facility that will draw energy from Shell's offshore wind farms. However, further information on Shell's hydrogen plans is yet to be revealed.

Shell's investment strategy prioritizes sectors that are difficult to reduce emissions, including biofuels and electric vehicle, which combine the advantages of profitability and carbon reduction. The company recognizes that the transition to a low-carbon future will not be linear, but Shell aims to be a resilient and profitable investment case throughout the energy transition.

Looking ahead, Shell is expected to announce an update on its energy transformation strategy in early 2024, outlining its comprehensive approach to climate change and long-term sustainability goals.