Shell splits Global Renewable Power Unit as part of restructuring by new CEO

(Bloomberg) – Shell Plc is splitting up its global renewable energy business while new Chief Executive Officer Wael Sawan puts his stamp on the energy giant.

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Sawan transformed its top management team back in January — just weeks after he began his tenure — combining natural gas and oil operations and merging renewable energy with refining and marketing to streamline the business and increase profitability . The latest change embeds activities like wind and solar into regional divisions of Shell Energy, the company’s energy business.

Like its closest competitor BP Plc, Shell has signaled a renewed focus on its oil and gas business, which posted record profits last year after the Russian invasion of Ukraine pushed up energy prices. After years of messages emphasizing climate plans, big oil companies are prioritizing near-term energy security while sticking to long-term net-zero emissions goals.

According to an internal Bloomberg News document, Shell is axing the global role of executive vice president for renewable energy from Thomas Brostrom, who was hired by Danish energy giant Orsted A/S. Renewable power generation will now be overseen by Shell Energy’s regional heads, who report to executive vice president Steve Hill, the document said.

The reorganization also appoints Anna Mascolo as executive vice president of low-carbon products and sectors to oversee a variety of businesses, including carbon capture, biofuels and nature-based solutions, according to the document.

Hill and Mascolo will report to Huibert Vigeveno, who heads Shell’s Downstream and Renewables business and sits on Shell’s Executive Committee.

A Shell spokesman confirmed the changes, saying that combining downstream and renewable energy in a single directorate strengthens businesses by bringing together all elements of low-carbon and zero-carbon energy. Brostrom will remain with the company as senior vice president for Shell Energy in Europe and Asia, overseeing all offshore wind energy globally, he said.

Sawan’s shift in focus means Shell’s natural gas business will continue to grow in a world desperate for the fuel. And after years of steadily growing investments in the company’s low-carbon and renewable energy business, spending on the unit will remain flat.

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