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Shell cuts 200 jobs, contracting the hydrogen division | Business News

Oil and gas giant Shell has continued its retreat from renewables as it is set to cut 200 low-carbon jobs and review another 130.

Next year 200 roles are to be slashed in the low carbon solution and hydrogen divisions, while a further 130 positions are under review in an effort to reduce headcount and to grow profits, Shell said.

Cuts to the low carbon solution division equate to 15% of the roughly 1,300 staff in the department.

Carbon capture storage and nature-based solutions also form the department but will be unaffected, and renewable power will also not be hit.

The light hydrogen mobility unit that worked on hydrogen solutions for cars will see the most cuts: two of four general manager roles in the hydrogen section will be merged, Shell said. Work to move support hydrogen-fuelled heavy goods vehicles will continue.

Some roles will be integrated into other parts of the company which has more than 90,000 employees, Shell added.

Shell had already closed its hydrogen car refuelling points in the UK as consumers chose electric cars. It comes despite the company committing to build Europe’s largest renewable hydrogen plant in the Netherlands.

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The cuts come as the new Shell chief executive Wael Sawan seeks to boost profits and gas production while keeping oil output steady. Focus on high-margin projects (such as oil when prices are high) is part of his plan.

Shell’s target of cutting oil production each year for the rest of the decade was dropped in June of this year after cutting production by about 20% from a 2019 peak.

Also shelved were any renewable-electricity capacity targets. Instead, it aims to invest more than six times as much on fossil fuels as it will on clean power.

In 2022, Shell spent 17% (£3.5bn) of its total capital expenditure (£20bn) on “low-carbon energy solutions”, which included renewable power, electric vehicle charging and…

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Source: news.sky.com
This notice was published: 2023-10-25 12:48:00

By Sky News

Sky News is a British 24-hour information television channel, the first in Europe of its kind, launched on February 5, 1989 by the British Sky Broadcasting Company.

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