Shell has announced a major pivot in its business strategy, focusing on expanding its electric vehicle (EV) charging infrastructure and divesting approximately 1,000 of its retail sites within the next two years.
According to Shell’s latest energy transition strategy report, the company said the decision to enhance its network with an expanded offering of EV charging stations was being made in response to changing consumer preferences. Shell aims to increase its number of charge points from the current 54,000 to 200,000 by 2030, focused mainly in Europe and China. (via Bloomberg)
The sale of 1,000 retail sites, approximately 500 in 2024 and another 500 in 2025, represents about a 2% reduction of Shell’s global footprint. This decision is not merely about reducing physical presence but is focused on reallocating resources towards areas with the highest demand for EV charging facilities. Shell’s approach includes not only installing chargers at existing gas stations but also at new, strategic locations like mobility hubs, retail locations, and coffee shops.
The transition to EV charging is not unique to Shell. Other energy giants are also entering the charger market, recognizing the potential for significant returns. Shell anticipates an internal rate of return of 12% or higher from its charging business, signaling strong confidence in the profitability and sustainability of their shift to cater to EVs.
This decision to shift the company’s focus towards EVs comes just a few weeks after Shell announced it was closing seven hydrogen stations in California, and abandoning plans to build 48 more stations.
