Shell is proposing that the UK government should vividly ban ICE cars by 2030. The firm says that this move will facilitate the implementation of its five-year plan. Big Oil thinks that this proposal by Shell will sabotage its operations and thrash its current strategy.
The UK government was intending to ban the sale of the new ICE cars by 2035. The UK has been contemplating on whether to follow this target or shorten it to 2032.
Royal Dutch Shell has witnessed a substantial drop in its profits for the last ten years. The most considerable decline is the one engineered by the shelter-in-place measures due to the coronavirus pandemic. Thus, the firm thinks that the UK can initiate the ban as early as 2030.
Shell lauds the UK’s idea of implementing the ban in 2035 but is confident that an early ban will help the region realize the net-zero emissions’ target even earlier.
The chair of the UK’s Shell, Sinead Lynch, has every reason to believe that the UK can achieve net-zero emissions by 2030. He has gone ahead to articulate the steps the country can follow to achieve this target.
Lynch advises the UK to give purchase discounts on the electric vehicles to accelerate its inception. He adds that the UK can install charging stations to facilitate the operation of these vehicles. One of the advantages of the Evs is that their owners can recharge them in their homes. Thus, the UK needs to set up fast-charging spots in its public areas.
Notably, Shell has substituted its first service station forecourt with an EV charging system. This move proves that Shell anticipates being a going concern even with the transition to electric cars. Shell is also spreading this change to its stations all over the globe. For example, the US Boston Airport Shell branch has Tritium-made DC fast charging systems.
Next, Lynch advises the utilization of smart vehicle charging technologies so that the grids can sustain the high demand for electricity by the escalating quantity of electric vehicles. He says that this move will minimize the pressure on the power grids and lower the cost of expanding the grid connections.
Lynch recommends that the electric vehicles can recharge at night when the industrial sector is off the grid. This move will sustain the cars during the day. The Evs will only need a small quick recharge which the fast charging units can supply during the day.
Shell is one of the oil companies that appear to be enlightened concerning the EV revolution. This firm has procured NewMotion, an EV charging system firm. NewMotion sells smart chargers and is partnering with UK’s Aldi stores to develop 140 recharging spots for the Evs.
In conclusion, IG’s lead market analyst, Chris Beauchamp, warns oil companies to strategize how they can transition to electrification. He says that this is the only way they can evade being phased out by the advancing renewable energy industry.