Shell vs. Petroleum: Statism at the Pump

By Robert Bradley Jr. -- August 11, 2020

Shell also supports the UK Government’s ambition to increase the uptake of electric vehicles and believes the phase out date for sales of new internal combustion engine vehicles could be brought forward to 2030…. However, this could only be delivered through a robust government plan to make the transition fair and deliverable. (Shell, “Electric Mobility“)

In “Why We need a Plan to Achieve the Ban,” UK Country Chair Sinead Lynch of Shell stated:

I recently participated in a discussion hosted by Climate Action on ‘Rising to the Net-Zero Challenge’. My fellow panellists were John Sauven, Executive Director Greenpeace UK and Shaun Spiers, Executive Director Green Alliance.

Greening the recovery was, of course, a key topic of conversation and led us to discuss the government’s plans to bring the ban on the sale of new petrol and diesel cars forward to 2035. 

We believe that the right policy and incentives could allow the UK to achieve this as soon as 2030, to ensure the UK meets the 2050 net zero target.

128,500 of the UK’s 32 million cars are pure-electric and this figure is creeping upwards. However, cost is still holding many people back. 70% of people would consider buying an electric vehicle (EV) but 80% of those said the upfront cost was stopping them, according to a survey we commissioned recently.

The good news is that electric vehicle and battery technologies have shown enormous progress over the past decade, and we can expect this trend to continue driving down the price for consumers. 

But there are a few barriers which still need to be overcome.

The Government needs to continue providing incentives to help customers go electric that are sustainable in the longer-term. Norway’s successful example of EV deployment is largely due to the fiscal measures adopted, including a VAT exemption.

Then there is charging. Customers must be reassured they will be able to charge wherever is most convenient for them, while at the same time not disrupting their journeys. Even if most cars will charge at home or at work, electric vehicle drivers will need an increasing number of faster, high-powered options at forecourts and other public locations. Customers need to see faster deployment of a public rapid charging network. And more investment is needed in UK electricity networks so they can handle the extra demands of electric vehicle charging. 

Simultaneously, smart charging technologies will be a vital element in the transition to EVs, as they help power companies to better balance demand with the variable supply of electricity. At the same time, they help keep costs down for consumers while limiting the need to reinforce the distribution networks. For example, smart technologies can shift the recharge of EVs to happen overnight when the electricity system has surplus capacity. Throughout the day, they can also help to balance the output from renewable electricity production, from wind or solar.

The market is ready to deliver these solutions – at Shell we are doing our part by increasing numbers of fast chargers on our forecourts and through increasing Shell-owned New Motion’s installation of home and office charge points. NewMotion recently partnered with Aldi to provide EV charge points for customers to use while they do their shopping.

The technology is ready, the infrastructure is growing, but the speed of the transition needs to accelerate over the next decade. The UK needs need a robust framework of enabling policy measures so that business and industry can prepare to reach this target. 

Once these pieces are in place, a 2030 ban can be achieved.

Don’t think that Shell is not going to do this without profits.
Shell Recharge” is a new profit center.

Launched in 2017, Shell Recharge is an on-forecourt electric vehicle charging service, providing EV drives charging with 100% certified renewable electricity.

Over the past three years this service has expanded rapidly and there are now over 70 EV charge posts available at Shell forecourts across the UK. These include both rapid 50kw chargers and higher-powered 150kw chargers. Shell aims to increase the number of Shell Recharge posts on forecourts to 200 by the end of 2021.

---

Appendix: Shell on Electric Mobility

Unlike traditional vehicles, which usually only refuel at petrol stations, electric vehicles have the potential to be recharged at home, at work or on the go, including in shared locations such as forecourts, car parks or supermarkets.

128,500 of the UK’s 32 million cars are pure-electric and this figure is steadily increasing. For electric vehicle use to grow more rapidly, however, drivers need to feel confident that there are convenient and reliable means of recharging their vehicles.

At Shell we support this ambition, and, in the UK, this includes providing charging options for homes and businesses, as well as the provision of faster, high-powered charging options on forecourts.

Shell also supports the UK Government’s ambition to increase the uptake of electric vehicles and believes the phase out date for sales of new internal combustion engine vehicles could be brought forward to 2030, to make sure the UK meets the 2050 net zero target. However, this could only be delivered through a robust government plan to make the transition fair and deliverable.