Shell’s target is to become a net-zero emissions energy business by 2050 or sooner. As part of this, we are increasingly working with customers, governments, and others to help address carbon emissions in different sectors.

A critical part of Shell’s success in the energy transition will be our ability to work with customers. By listening to our customers, learning from them and working together, we can understand what they want and need as the world moves towards a lower-carbon future. We aim to use such insights to profitably provide the low-carbon products and services they will want to buy.

We are also working with companies in each sector and with policy makers to increase ambition around reducing emissions, better enable infrastructure changes, and provide favourable conditions for investing in lower-carbon options. We are joining coalitions focused on decarbonising sectors and working with others to produce reports [add links to reports] that identify and show pathways to reduce emissions in some of the sectors that are hardest to abate.

Discover our key sectors

Aviation

Man in front of a plane at an airport apron

Aviation accounted for 3% of energy-related carbon dioxide (CO2) emissions in 2019. While COVID-19 dramatically reduced flights in 2020, passenger numbers are expected to double to 8.2 billion by 2037, leading to a rise in CO2 emissions.

One way to cut carbon is by using Sustainable Aviation Fuel, which can be made from biomass and waste. SAF is the aviation sector’s most viable option for reducing its emissions in the short to medium term but currently accounts for less than 0.1% of the world’s consumption of aviation fuel. In September 2021, Shell announced an ambition to produce around 2 million tonnes of SAF a year by 2025 and to have at least 10% of our global aviation fuel sales as SAF by 2030.

Currently, Shell supplies SAF made by others. This made up less than 1% of our total aviation fuel sales in 2021. From 2024, however, we will start supplying customers with SAF produced at our Shell Energy and Chemicals Park Rotterdam, the Netherlands.

In 2021, Shell invested in Lanzajet, a leading sustainable fuels technology company and sustainable fuels producer, and announced a memorandum of understanding with Vattenfall, SAS and LanzaTech to investigate the production of SAF.

We are collaborating with Rolls-Royce to test 100% SAF in airplane engines for the first time. And, in 2022, Shell was the first company to supply SAF to customers in Singapore where we have established the supply chain, from blending to distribution, for the Asian market.

Shell is also working with World Energy, Neste and Red Rock to develop a scalable supply of SAF. In partnership with World Energy, Shell Aviation has agreed to supply up to 6 million gallons of sustainable aviation fuel to Amazon Air and DHL Express, for example.

We also support tax incentives to help to drive down the cost of SAF around the world. We are advocating that the European Union’s 2030 target for the use of SAF doubles from 5% to 10%, and for governments and policymakers to encourage the International Civil Aviation Organization to adopt a net-zero emissions target for 2050.

Another solution could be for hydrogen to play a role in the decarbonisation of the aviation industry. We continue to work closely with our partners to assess the development of hydrogen and for planes and have a stake in ZeroAvia, a hydrogen start-up.

Any remaining emissions can be offset through the purchase of carbon credits. The aviation sector currently needs verifiable, high-quality nature-based solutions (NBS) to offset emissions, and at Shell, we are offering these to airline customers like Etihad Airways.

Shell is also a founding member of Clean Skies for Tomorrow, a coalition of leading airlines, airports, manufacturers, and fuel providers.

Decarbonising aviation

Marine

cargo ship with containers

Around 80% of the volume of world trade is today transported by ships. International shipping accounted for around 2% of global energy-related CO2 emissions in 2020, according to the International Energy Agency.

We outlined the actions we are taking to help accelerate progress towards net-zero emissions in the shipping sector in our report Setting Shell’s Course. We are also an active member of the Sea Cargo Charter and the Global Maritime Forum’s Getting to Zero coalition, who are calling for at least 5% zero-emissions fuel in international shipping by 2030, and commercially viable zero-emissions vessels on deep-sea trade routes.

Low-carbon solutions for shipping include hydrogen and ammonia in the long term, and LNG, biofuels and methanol in the short term. Shell is developing an initial portfolio of biofuels for shipping, and in 2021, we performed the first bio-LNG bunkering trial in Rotterdam, the Netherlands.

Energy-efficiency technologies and engine lubricants can also improve efficiency to cut emissions.

Using liquefied natural gas (LNG) offers another way to cut emissions today. When compared with heavy fuel oil, the most common source of shipping fuel today, from extraction to combustion, LNG can reduce greenhouse gas emissions by up to 15-21% depending on the engine. Shell has now completed more than 400 ship-to-ship LNG bunkering operations in seven countries and eight ports. In 2021, we carried out the first LNG bunkering operations in Gibraltar and Singapore. We are aiming to double the size of our LNG bunkering network by the mid-2020s, to around 15 major ports on key international trading routes.

With Mediterranean Shipping Company (MSC) we have signed an agreement to work closely together to help accelerate the decarbonisation of the global shipping sector. Together we plan to develop a range of safe, sustainable and competitive technologies that can reduce emissions from existing assets and help to enable a net-zero emissions future for shipping.

Watch this video to see more on the collaboration

In February 2022, Shell signed a five-year contract for Kongsberg to install its JAWS (Just Add Water System) software on board 45 LNG carriers chartered by Shell. This is a data-analytics tool that can reduce fuel consumption by up to 7%.

We also announced a collaboration with technology firm GTT to accelerate the development and innovation of liquid hydrogen technologies. This is part of Shell’s strategy to develop a hydrogen energy supply chain by creating scalable and safe liquefied hydrogen shipping technologies.

The shipping sector is hard to decarbonise because of the long lifecycle of vessels and high upfront investment costs. Shell believes that shipping can reach net-zero emissions by 2050 and are calling on the International Maritime Organisation to set this 2050 target.

Decarbonising shipping

Road freight

Man besides a truck in cargo port

With around 217 million trucks and buses, road freight accounts for about 9% of global carbon dioxide emissions, according to the International Energy Agency. And demand for road freight is set to double before 2050.

Shell supports policies and incentives in the European Union (EU) that would enable all new medium- and heavy-duty vehicle sales to be zero-emissions vehicles by 2040, to help the EU to meet its 2050 carbon neutrality goal.

A range of low- and zero-emission options are available today. But each are at different stages of readiness for commercial use.

Electricity is an option for lighter trucks and shorter distances. In the USA, through our subsidiary Shell Recharge Solutions, we started providing electric charging infrastructure for trucks as part of a project led by Volvo Group and South Coast Air Quality Management District.

Hydrogen offers the most promising solution to achieve net-zero emissions by 2050 for heavy-duty vehicles and over longer distances. Shell is working with partners to develop hydrogen infrastructure in several countries. In the USA, we are working with the Port of Los Angeles, Toyota Motor Corp. and Kenworth Truck Co to enable hydrogen trucks to operate out of the Port of Los Angeles. In 2021, we signed an agreement with Daimler Truck AG to jointly drive the adoption of hydrogen trucks and accelerate the decarbonisation of road freight in Europe. The aim is to build 150 Shell green hydrogen refuelling stations and supply around 5,000 Mercedes-Benz heavy-duty hydrogen trucks by 2030.

In 2021, we announced a strategic collaboration with Penske to help drive decarbonisation and sustainability across sectors. The collaboration aims to help customers address emissions across their supply chains - from warehouse facilities, vehicle and fleet technologies to sustainable transportation routes, with an initial focus on the USA.

As fleets switch to new vehicle models with batteries for electricity or hydrogen, some vehicles will still need fuels that work with existing engines.

Today, the sector can use liquefied natural gas (LNG), biogases, and biofuels to reduce its carbon emissions through the transition to battery-electric and fuel-cell electric vehicles. LNG can help to reduce greenhouse gas emissions in trucks and buses and, in 2021, Shell added 18 LNG refuelling stations to our network, which now consists of 44 sites across Europe and North America. We plan to increase our network of LNG refuelling stations to nearly 80 by the end of 2022.

Liquefied natural gas (LNG), renewable natural gas (RNG), biofuels blended into conventional fuels and compensating carbon using nature and technology, will help the sector reduce its carbon emissions.

In Europe, we are offering liquefied renewable natural gas (bio-LNG) to customers with trucks powered by natural gas. In 2021, in collaboration with Nordsol, we opened our first European bio-LNG plant, in Amsterdam Westport, in the Netherlands. This will make us the first fuel provider to offer a blend of bio-LNG throughout the entire LNG network in the NetherlandsWe also offer nature-based carbon credits to fleet customers across 17 countries. This enables them to offset the emissions generated by the extraction, refining, distribution and use of the Shell fuel they buy. At the end of 2021, some [230 fleet] customers have signed up to participate and are offsetting the emissions of [53 million litres of fuel].

Decarbonising road freight

Heavy industry

Man working in steel industry

Many industrial processes require high temperatures, chemical reactions, or dense energy storage. These are not easy to electrify and account for a significant share of global CO2 emissions.

One important way to address industrial emissions is through improvements in energy efficiency. For example, we are installing new furnaces at our Moerdijk petrochemicals plant in the Netherlands. This could reduce the plant’s annual CO2 emissions by around 10%.

Capturing, reusing or safely storing carbon emissions from plants and factories – carbon capture, utilisation and storage, or CCUS – also helps to decarbonise industry.

Shell is part of the Northern Lights project, focused on transporting and storing CO2 from industrial facilities in Norway and potentially from across other countries in Europe.

Find out what we are doing in our chemicals business.

Shell also serves customers across the industrial and commercial sectors where there is growing demand for decarbonisation products and services. More than 2,000 companies and organisations have made commitments to get to net-zero emissions by 2050. We are forming strategic alliances with big multinational companies like Microsoft and Amazon, helping them and us to achieve our net-zero aims. 

For example, we are supplying Microsoft with renewable energy as part of our strategic alliance launched in 2020. In 2021, we advanced this partnership by signing several deals to supply up to 500 MW of renewable energy, helping Microsoft to meet its goal of using 100% renewable energy by 2025.

In 2021, we also entered into strategic partnerships to reduce emissions in heavy industry, which includes steel, chemicals and cement, and other intensive manufacturing industries. These involved partnerships within the steel industry, with Sumitomo, in cement, with Pan-United Corporation and eight new partnerships within the construction and road sector.

Shell is also using intricate digital modelling technologies to explore how heavy industry in different parts of the world might decarbonise. The first areas of focus are on cement and steel in India.

Light industry and commercial

Businessman using digital interface with holograms 3D rendering

We serve customers across the industrial and commercial sectors where there is growing demand for decarbonisation products and services. More than 2,000 companies and organisations have made commitments to get to net-zero emissions by 2050. We are forming strategic alliances with big multinational companies like Microsoft and Amazon, helping them and us to achieve our net-zero aims.

For example, we are supplying Microsoft with renewable energy as part of our strategic alliance launched in 2020. In 2021, we advanced this partnership by signing several deals to supply up to 500 MW of renewable energy, helping Microsoft to meet its goal of using 100% renewable energy by 2025.

Personal mobility

Shanghai roads

Shell is the world’s largest mobility retailer, with more than 46,000 service stations operating in more than 80 markets. We believe the biggest opportunity to decarbonise our portfolio is by offering more low-carbon alternatives such as charging for electric vehicles, biofuels and hydrogen.

In 2021, Shell operated almost 90,000 electric vehicle (EV) charge points, up from around 60,000 in 2020. We aim to increase this to more than 500,000 by 2025, and to 2.5 million by 2030. That is around 7% of the expected number of charge points in the world by 2030, according to the IEA.

In addition to these Shell-operated charge points, we also provide access to more than 350,000 public charge points through our roaming networks in Europe, North America, and South-east Asia. In January 2021, we acquired ubitricity, a European provider of on-street charging for electric vehicles through lamp posts.

In the UK, we opened our first EV charging hub in in Fulham, London, where petrol and diesel pumps at an existing fuel station have been replaced with ultra-rapid charge points. 

Shell and Hyundai have signed an agreement to explore ways to offer lower-carbon products and services and to reduce emissions across their operations. As part of the collaboration, Shell Recharge Solutions will provide EV services to premium brand, Genesis.

We are also involved in biofuels for mobility. In 2021, around 9.1 billion litres of biofuels went into Shell’s fuels worldwide. Shell and our Brazilian joint venture Raízen are together one of the world’s largest blenders and distributors of biofuels for mobility.

Hydrogen can be used to power a number of different types of transportation. In Germany, Shell is a member of the H2 Mobility joint venture for developing a nationwide network of hydrogen-fuelling stations for passenger cars. The venture operates more than 90 stations across Germany.

We have around 50 hydrogen retail sites in Europe and North America, where drivers can fill up their vehicles with hydrogen fuel.

Finally, we offer carbon credits to passenger car drivers who want to offset the life-cycle emissions of the fuel they buy from Shell. We have made this offer available to passenger car drivers at more than 3,100 retail sites in Austria, Canada, Germany, Hungary, the Netherlands, Switzerland, Denmark and the UK. In 2021, around 49 million litres of fuel sales were offset in 2021, accounting for 1% of our total volumes sold in markets where we have an offset programme.

Shell supports the European Commission’s proposal to reduce greenhouse gas emissions from road transport by 13% by 2030.

Latest Updates

Hyundai Motor and Shell expand collaboration to drive transition to clean mobility and carbon reduction

The MOU will draw on the companies’ expertise in electric vehicle (EV) charging, hydrogen, low carbon energy solutions and digital technology as potential opportunities for both companies to reduce carbon emissions.