The world needs more clean energy: Shell Turkey Chairman
SHELL IS TRANSFORMING INTO A VERSATILE ENERGY COMPANY WITH ITS NET-ZERO EMISSION TARGET FOR 2050. THE FOUR-PRONGED ENERGY TRANSFORMATION STRATEGY IMPLEMENTED THE COMPANY CONSISTS OF CREATING VALUE FOR SHAREHOLDERS, ACHIEVING NET-ZERO EMISSIONS, SUPPORTING SOCIAL DEVELOPMENT, AND RESPECTING NATURE.
of approximately 3% of energy used AS THE PROVIDER globally, Shell aims to operate with net-zero emissions by 2050. “It is a fact that the world needs more, cleaner, energy. Shell believes in this and our transformation is taking place in line with the strategies drawn within from framework,” said Shell Turkey Country Chairman Ahmet Erdem, adding that Shell’s business portfolio and way of doing business has transformed it into a versatile energy company instead of an oil and gas company.
It is obvious that this transition is necessary for our planet, but there is no simple and single solution to this problem, according to Erdem. He thinks that from electricity generation to industry, transportation, and heating, a serious change in the global energy system is needed. “Renewables such as solar and wind are critical to clean energy, but first we need to work on new technologies and bringing existing technologies to the point where they can be applied more easily,” he said.
Erdem also detailed the four-pronged energy transformation strategy implemented by Shell, which consists of creating value for shareholders, achieving net-zero emissions, supporting social development, and respecting nature.
NEW ENERGIES BUSINESS LINE ESTABLISHED
Since 2019, Shell has had a business line called ‘New Energies’, in which over USD 2bn is invested every year. In line with the company’s 2050 net-zero emission target, this business line has begun to implement practices that ensure energy efficiency and prevent greenhouse gas emissions in the operations, facilities, stations, and offices owned by Shell. “We are striving to develop low-carbon technologies and low-carbon products that increase efficiency. In this context, the priority is to reach zero emissions, starting from our operations,” Erdem noted. USD 1bn is allocated annually for research and development
Reducing carbon emissions by Shell customers by selling more renewable energy sources will follow suit. Working with decision-makers to play a role in shaping the incentives and regulations necessary to accelerate this transformation is also important for Shell. Shell Turkey Country Chairman Ahmet Erdem also discussed steps that will be taken to become net zero by 2050. Shell takes 2016 as a base and plans to reduce its total carbon emissions from 2016 by 20% by 2030. This rate will rise to 45% by 2035 and 100% by 2050. “We will also have reduced the emissions from our operations by net 50% in 2030,” he added. The company is also working on solutions for unavoidable carbon emissions. Studies on carbon capture techniques and nature-based techniques to make these sustainable have begun.
CONTRIBUTING TO TURKEY’S SUSTAINABLE ENERGY FUTURE
Operating in Turkey since 1923, Shell attaches great im
portance to meeting Turkey’s energy needs sustainably and safely, Erdem said. Shell hosts more than 1 million customers every day in its network of more than 1,000 stations spread all over Turkey, and it supplies fuel to more than 500,000 motor vehicles and hundreds of construction sites each day.
Shell is transforming stations across Turkey into stations that provide electricity from solar energy. The company, which has converted 13 stations so far, meets 30% of its electricity needs with solar at these stations, with a total installed power of 550 kW. The number of stations that get their electricity from solar energy will be increased to 85 by the end of 2022.
Shell has achieved financial savings of up to 10-15% so far thanks to these pilot projects in Turkey.
GREEN HYDROGEN, BIOLNG, AND ELECTRIC VEHICLES
As a highly import-dependent country in energy, the increase in energy demand in Turkey will continue, Erdem stressed. Turkey imports an average of 95% of the natural gas and oil it needs, so the price and cost of energy in the country depends on global energy prices. Imports will decrease when successful exploration in the Black Sea is completed and production begins, according to Erdem. The government plans to integrate the natural gas found in the Black See into its system in 2023. “However,” said Erdem, “In the meantime, the country needs to focus on energy efficiency, where we can make a quick gain in reducing carbon emissions. Energy efficiency has very important affects, ranging from its positive impact on the family budget to the company budget to the country’s budget.”
He cites the green hydrogen investments of Shell as steps the company is taking to support these technologies. In addition, Shell introduced the use of LNG in trucks as road transport for the first time in Turkey. Part of its transportation fleet was transformed into LNG trucks. The company also offers LNG to its customers in Turkey so that the logistics industry can maintain its competitive position in international markets. “We also are conducting research on low-emission LNG, which we call Shell BioLNG,” Erdem noted.
In addition, the company is trying to establish its infrastructure for electric vehicles with the service provided at Shell stations with the Shell Recharge brand. “This transformation will accelerate with the launch of an electric car by Turkey’s Automotive Joint Venture Group (TOGG), the increase in electric models in the portfolio of vehicle manufacturers, the advancement of technologies, and a decrease in costs,” said Erdem, adding that Shell has been investing heavily in these issues since the mid-2010s and it currently provides access to nearly 300,000 charging points in 35 countries.