Shell heads for cleaner future

OILSANDS SALE

which are blamed for global warming.

The world’s eight biggest producers, including Shell, Exxon Mobil Corp. and BP PLC, were indirectly responsible for as much climatedamaging pollution as the entire U.S. in 2015, according to a study by a London-based non-profit group CDP.

“We encourage Shell to sell potential stranded assets and support the company to invest these billions in exploring new sustainable business models,” said Mark Van Baal, founder of Follow This, a movement of green investors in Shell.

The oilsands sale to Calgary-based

will take about 1.7 billion barrels of proven oil reserves off Shell’s books, according to the company. It had 6.26 billion barrels of oil and other liquids and about 6.99 billion of gas reserves at the end of last year.

As well as accelerating the transition to gas, Van Beurden has also advocated a price on carbon and worked to promote hydrogen as an alternative transport fuel. The company opened the first hydrogen pump at a filling station in the U.K. last month.

Still, some see Shell’s efforts lagging behind other European explorers. Total SA has bought stakes in a wind company, a battery maker and a renewable-power retailer. Statoil ASA, which in December sold its Canadian oilsands business for $625 million, said Thursday renewable energy and low-carbon technology will make up 15 per cent to 20 per cent of capital expenditure at the end of the next decade, up from about 5 per cent today.

The oilsands sale is “a step in the right direction but Shell still hasn’t reached the tipping point of actually embracing the energy transition that you can see with utilities, Statoil and Total,” said Jeremy Leggett, chairman of the Carbon Tracker Initiative.