Shell to enter energy supply business in Netherlands

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Shell Energy continues its European expansion with its intended launch as an energy supplier in the Netherlands.

The company, present as a supplier in the UK and Germany, intends to supply 100% locally generated wind and solar power to customers.

Customers who purchase gas also are being offered a CO2 emissions offset scheme.

Under this scheme, customers can opt to pay an extra amount for each unit of gas, which is used to purchase credits from certified forest and tree planting projects that have avoided or absorbed carbon emissions. Among these are the Cordillera Azul rainforest protection project in Peru and the Katingan Mentaya conservation project in Indonesia.

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As an incentive to switch to Shell Energy, the company is offering €150 ($175) discount on a Shell Recharge home electric vehicle charging point and installation package, a 30% discount on EV charging with a Shell Recharge fast charger and €1 coffee and tea at Shell service stations.

As of February 2021 in the Netherlands Shell had 56MW of installed solar capacity at three plants and a further 30MW under development and ownership or shares in over 800MW of offshore wind with a further large offshore wind farm under development.

This is sold into the wholesale market, where Shell Energy will purchase the energy for supply to customers.

Legal challenge

Shell is currently facing a legal challenge in the Netherlands with the May ruling ordering the company to reduce its CO2 emissions by 45% below 2019 levels by 2030.

In July, Shell confirmed its intention to appeal the ruling, stating that it already has in place short and medium targets for cutting carbon emissions towards becoming a net zero energy business by 2050.

“We agree urgent action is needed and we will accelerate our transition to net zero,” said Royal Dutch Shell Chief Executive, Ben van Beurden in a July statement.

“But we will appeal because a court judgment, against a single company, is not effective. What is needed is clear, ambitious policies that will drive fundamental change across the whole energy system. Climate change is a challenge that requires both urgent action and an approach that is global, collaborative and encourages coordination between all parties.”

Shell has markets with renewables and energy solutions as its growth pillar and this new venture plays into both that growth as well as the company’s net zero ambitions.

“The step to start supplying energy to people’s homes fits in with Shell’s strategy to offer customers integrated energy solutions, both at home and on the road,” says Shell Energy Netherlands General Manager Barbara van de Bergh.