Shell is set to close 1,000 retail sites, including petrol stations, over the next two years, as it pivots to electric vehicle (EV) charging.
In its latest energy transition strategy, the business said: “We are upgrading our retail network, with expanded electric vehicle charging and convenience offers, in response to changing customer needs,”
“In total, we plan to divest around 500 Shell-owned sites (including joint ventures) a year in 2024 and 2025,” it said, in comments first reported by Bloomberg.
It comes as the energy giant waters down one of its carbon reduction targets- now planning to reduce the “net carbon intensity” of the energy it sells by 15-20% by 2030, compared with a previous target of 20%, in a move which has been criticised by green campaigners.
Shell currently operates 47,000 retail sites around the world but did not disclose details of the sites it had earmarked for closure, though it said the move would help meet demand for EV charging stations.
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It currently has around 54,000 EV charging points, which it plans to grow to 70,000 next year and to 200,000 by the end of 2030.
Expanding its EV charging operations will require the expansion of current Shell locations and finding new ones, it said.
It intends to focus on public charging, not home charging.
Geographically, Shell will concentrate its efforts in China and Europe, where the EV market is more evolved.
It added: “We have a major competitive advantage in terms of locations, as our global network of service stations is one of the largest in the world. We have other competitive advantages, such as our convenience retail offering which allows us to offer our customers coffee, food and other convenience items as they charge their cars.”
Earlier this year, campaigners slammed Shell for upping shareholder dividends as the firm announced a £22.4bn profit for 2023
