Shell dumps renewable energy & turns to tarsands.
Royal Dutch Shell Plc has no plans to make any more large investments in wind and solar energy in the future and does not expect hydrogen to play an important role in energy supply for some time.
"We do not expect material amounts of investment in those areas going forward," Linda Cook, head of Shell's gas and power unit told reporters at a press conference on Tuesday.
"They continue to struggle to compete with the other investment opportunities we have in our portfolio," Cook said of solar and wind.
Shell's future involvement in renewables will be principally limited to biofuels, which the world's second-largest non- government-controlled oil company by market value believes is a better fit with its core oil and gas operations. In the past year, the company said it was refocusing its wind business on the U.S. as it pulled out of European projects.
Shell has around 550 megawatts of wind power capacity but does not break out figures for investment in each renewable energy source.
From 1999-2006 Shell invested around $1.25 billion in green energy, according to Reuters analysis of Shell's statements. Wind played a large part of that.
One renewables analyst said the decision could reflect the $100 per barrel drop in oil prices since July which has eased concerns about energy supply and the economic crisis which has pushed environmental concerns down the agenda.
"There may not be any political pressure on them to invest in renewables at this particular stage," the analyst, who asked not to be named, said.
The decision may anger environmental groups who, in recent years, have put pressure on Shell over its major investments in Canada's oil sands, an energy and water intensive business which involves squeezing low grade
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Pilot Tidal Energy Scheme for North Wales Coast
Conwy County Borough Council has backed plans for a pilot tidal energy scheme off the North Wales Coast.
The £150 million scheme at Llanddulas in North Wales would provide a testing facility for turbine designers and manufacturers, and assess the environmental impact of turbines.
The project was given approval by the council as part of a strategic regeneration strategy for the Conwy coast, prepared by consultant Capita Symonds.
Paul Terry, Capita Symonds, said: "Tidal power will play a key role in providing a sustainable energy source for future generations. The North Wales coast is an ideal place for such a scheme as it’s blessed with a good tidal range and suitable ocean depth." He added that the project could also help protect the coast from rising sea levels, storm surges and coastal erosion.
The regeneration strategy also calls for seven new visitor centres costing £30m should be built at key locations stretching from Conwy to Rhuddlan. But North Wales Tourism chairman Chris Jackson raised doubts over whether the proposals could realistically be funded in the current economic climate. The council’s approval now means that Capita Symonds will seek funding for feasibility studies and investigations to develop a business case for the scheme.
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Micro-generation forms key part of Government's vision.
Climate Change Minister, Greg Barker, has launched a consultation on the Government's strategy to boost energy self-sufficiency in communities.
The public debate about microgeneration will look at ways to ensure the quality of generating technology and its installation, how to improve available products, and how to develop the microgeneration supply chain while providing more accessible advice.
The consultation follows last week's news that the Government is to overturn a ban on councils selling "green" electricity back to the national grid by the end of the year.
Mr Barker said“I want to see more homes, communities and businesses generating their own energy. We can literally bring power back to the people.Microgeneration is a key part of this vision.
“By becoming more self sufficient we can create sustainable local energy economies. People and communities can save money on their fuel bills at the same time as generating an income and cutting carbon. I want to work with industry to overcome the challenges it is facing. Together we will create a marketplace for jobs and prosperity alongside products and advice which people trust.”
More information can be found on the Microgeneration Strategy consultation web page
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Green policies could hit UK manufacturing hardest.
A report from the think-tank Civitas warns that the increasing cost of energy, which has been driven up as a result of green policies could hit the UK's manufacturing sector - just as the country needs industry to help boost the economy.
The report said efforts to tackle climate change through cutting greenhouse gas emissions and increasing renewable energy generation could significantly push up energy bills for business.Extra costs are put on energy from policies including the EU's emission trading scheme, the renewables obligation to boost investment in technology such as wind power, and the climate change levy which taxes energy use in businesses and the public sector. Also, the Labour Government's climate change strategy had already added an extra 14% on homeowners' electricity bills and 21% on business bills.
Last year's renewable energy strategy could have created "surcharges" of up to 70% for businesses, and 33% for domestic customers by 2020, the report from Civitas claimed. The study warns the new coalition Government's energy policy could be as damaging to manufacturing industry as the previous administration.
The review by economist Ruth Lea and Jeremy Nicholson, director of lobbyists the Energy Intensive Users Group, said the UK was badly placed to meet its commitments to boost renewables as it was starting from such a low base. Even without the extra costs imposed to pay for climate change policies, Britain has high industrial electricity prices, which threaten its competitiveness.
Ms Lea said: "The economy desperately needs a competitive and thriving manufacturing sector if it is to prosper. Competitive energy prices are vital to the success of manufacturers, especially energy intensive users.Government energy policies are, however, remorselessly driving up energy costs thus risking the 'migration' of manufacturing plants to economies where the costs are lower."
