Shell to install solar panels across retail sites

The company announced this initiative on Nov 4, estimating it will generate 25,550 MWh of clean energy per year, enough to power 7,392 households. This move is part of Shell’s broader net-zero transformation strategy, aimed at progressively reducing its absolute emissions. The goal is to cut Scope 1 and Scope 2 emissions by 50% by the end of 2030, compared to the 2016 baseline.

Shell Malaysia has partnered with Progressture Power, a Malaysian company, to implement the project through a Power Purchase Agreement (PPA). Progressture Power will own and operate the rooftop solar systems at Shell’s retail sites. This collaboration is expected to reduce carbon emissions by 19,366 tons annually.

Progressture Power specializes in solar project development, construction, waste-to-energy (WTE) solutions, and renewable energy certificate trading. The company aims to boost its renewable energy capacity across Southeast Asia to 1.5 GW within the next five years.

Shell Malaysia aims to reduce Scope 1 and Scope 2 carbon emissions by 50% from the 2016 baseline by the end of 2030. (Photo: iStock)

Shell faces criticism for softened emission reduction targets

The road to achieving corporate emission reductions is far from straightforward. In March this year, Shell canceled its previous target of reducing carbon intensity by 45% by 2035. CEO Wael Sawan admitted that setting such a target was "perilous" due to the significant uncertainties surrounding the energy transition process. Carbon intensity refers to the amount of carbon emissions produced per unit of energy sold, typically measured in millions of dollars.

Reuters reported that while the oil industry has posted impressive profits in recent years, returns in the renewable energy sector have declined significantly. Facing pressure from investors, Shell has increasingly focused on its most profitable sectors. The company has sold off its European electricity trading business, exited offshore wind and low-carbon energy projects, and undergone large-scale layoffs, particularly in its low-carbon solutions department.

In addition to this, Shell has lowered its net carbon intensity reduction target for its energy products, reducing it from the original 20% to a more flexible range of 15% to 20%. While the company maintains its 2050 net-zero target, this shift has attracted criticism from environmentalists, who argue that Shell is regressing in its commitment to decarbonization.

According to Recessary