SUSTAINABILITY AT OUR CORE VALUES ACHIEVING NET- RESPECTING NATURE POWERING LIVES GENERATING OUR PERFORMANCE

SHELL ZERO EMISSIONS SHAREHOLDER VALUE DATA

We are expanding our wind power activities to make more renewable electricity available to our customers.

ACHIEVING NET-ZERO
EMISSIONS
Our Powering Progress strategy focuses on working with our customers and across sectors
to accelerate the transition to net-zero emissions, in step with society.

21 ENERGY TRANSITION
24 MANAGING GREENHOUSE GAS EMISSIONS
32 PROVIDING LOWER-CARBON ELECTRICITY
36 FUELLING MOBILITY
39 DRIVING INNOVATION

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ENERGY TRANSITION
OUR APPROACH TO CLIMATE CHANGE AND THE ENERGY TRANSITION

POWERING PROGRESS
Working with our customers and across sectors to accelerate the transition to net-zero emissions.
Our climate target is to become a net-zero emissions energy business by 2050, in step with society's progress in achieving
the goal of the UN Paris Agreement on climate change.
We have set targets to reduce the carbon intensity (Net Carbon Footprint) of the energy products we sell. This includes short-
term targets of 3-4% by 2022, 6-8% by 2023 and 9-12% by 2024 (compared with 2016). It also includes medium- and long-
term targets of 20% by 2030, 45% by 2035, and 100% by 2050 (compared with 2016), in step with society.
In October 2021, we announced an absolute emissions reduction target of 50% by 2030, compared with 2016 levels on a
net basis. This new target covers all Scope 1 and 2 emissions under Shell’s operational control and complements our existing
carbon-intensity targets.

In 2021, Shell reshaped and restructured its organisation to place our energy transition strategy at the heart of everything we
do. Our governance is designed to effectively manage our transition to a net-zero emissions energy business by 2050, in step
with society’s progress towards achieving the goals of the Paris Agreement.
Becoming a net-zero emissions energy business means that we are reducing emissions from our operations and from the fuels
and other energy products, such as electricity, that we sell to our customers. It also means capturing and storing any remaining
emissions using technology, protecting natural carbon sinks and providing high-quality nature-based solutions to our customers to
offset unavoidable emissions.
Because emissions resulting from customer use of our energy products make up the greatest percentage of Shell's carbon
emissions, this is where we can make the greatest contribution to the energy transition, by increasing sales of low-carbon energy
products and services.
We have set short-, medium- and long-term targets to track our performance against our overall climate target over time. These
targets are measured using the net carbon intensity metric.
We follow the GHG Protocol’s Corporate Accounting and Reporting Standard, which defines three scopes of greenhouse gas
emissions:
Scope 1: direct greenhouse gas emissions from sources that are owned or controlled by Shell.
Scope 2: indirect greenhouse gas emissions from generation of purchased energy consumed by Shell.
Scope 3: other indirect greenhouse gas emissions, including emissions associated with the use of energy products sold by
Shell.

In October 2021, in support of our 2050 net-zero emissions target, we set a target to reduce Scope 1 and 2 absolute emissions
from assets and activities under our operational control (including divestments) by 50% by 2030, compared with 2016 levels on
a net basis.
We have also established remuneration policies which are designed to support us in achieving our short-term climate targets.
Read more about our climate target at www.shell.com/energy-and-innovation/the-energy-future/our-climate-target and in our
Annual Report.
Read more about our approach to climate change in our Energy Transition Report at www.shell.com/SET.

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Assessing climate-related risks

As Shell has operations both onshore and offshore, the potential physical impacts of climate change are important for us to
manage. In this respect, we consider the physical risks to our assets and facilities to ensure they can operate and be accessed
safely under extreme weather conditions.
Projects under development that are expected to have a material greenhouse gas impact must meet our internal carbon
performance standards or industry benchmarks. Our performance standards are used for measuring a project’s average lifetime
greenhouse gas intensity or energy efficiency per asset type. Applying these criteria ensures that our projects can compete and
prosper in the energy transition. An exception process is in place to manage specific incidental cases.
Read more about climate risk management in our Annual Report.
 More in this report Our Powering Progress targets | Managing greenhouse gas emissions | Letter from the CEO | Performance overview
 More on Shell websites Powering Progress – transitioning to net-zero emissions | Our climate target | Our Climate Target: Frequently Asked Questions

DELIVERING OUR CLIMATE TARGETS

Net carbon intensity

Shell’s net carbon intensity (NCI) provides an annual measure of the life-cycle emissions intensity of the portfolio of energy
products sold. It is the average intensity, weighted by sales volume, of the energy products sold by Shell. It is tracked, measured
and reported using the Net Carbon Footprint (NCF) methodology.
We express our net carbon intensity as the grams of CO2 equivalent per megajoule (gCO2e/MJ) produced for each unit of
energy delivered to, and used by, a consumer.
Shell’s net carbon intensity in 2021 was 77 gCO2e/MJ. Although this is a 2.7% increase from the previous year, it represents a
2.5% reduction from the 2016 reference year, which means that we achieved our first short-term target of a 2-3% reduction in
NCI by the end of 2021.
The increase in Shell’s net carbon intensity in 2021 is largely due to the introduction of an improved approach for the estimation
of the emissions intensity of power sold by Shell. The new approach is based on categorising power sales as certified renewable;
own generation or power purchase agreement; or power purchased from the grid. Intensities are then assigned to each power
sales category allowing a better estimation of the overall intensity of power sold by Shell.
We have received third-party limited assurance on our carbon intensity, measured and reported using the Net Carbon Footprint
methodology, for the period 2016 to 2021. Limited assurance means nothing has come to the auditor’s attention that would
indicate that the greenhouse gas data and information as presented in the Greenhouse Gas Statement were not materially
correct.
Read more about our Net Carbon Footprint methodology at www.shell.com/ncf.

NET CARBON INTENSITY [A] [B]

gCO2e/MJ

85
80
75
70
65
60
12 13 14 15 16 17 18 19 20 21

[A] The NCI calculation uses Shell’s energy product sales volume data, as disclosed in the Annual Report and Sustainability Report. This excludes certain contracts held for trading purposes and
reported net rather than gross. Business-specific methodologies to net volumes have been applied in oil products and pipeline gas and power. Paper trades that do not result in physical product
delivery are excluded. Retail sales volumes from markets where Shell operates under trademark licensing agreements are also excluded from the scope of Shell’s carbon intensity metric.
[B] Acquisitions and divestments are included in the actual performance tracking with the target and reference year unchanged. Note that acquisitions and divestments could have a material
impact on meeting the targets.

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Absolute emissions reduction performance

In 2021, our total combined Scope 1 and 2 absolute greenhouse gas emissions (from assets and activities under our operational
control) were 68 million tonnes on a CO₂ equivalent basis, a 4% reduction compared with 2020, and an 18% reduction
compared with 2016, the base year. Our Scope 3 emissions from energy products included in our net carbon intensity were
1,299 million tonnes CO₂e.

SCOPE 1 AND 2 EMISSIONS UNDER OPERATIONAL CONTROL

million tonnes CO2e

100
80 b 11 12 11 10
60
8 8
40 a 72 73 71 70
63 60
20
0
2016 2017 2018 2019 2020 2021

a Scope 1 emissions - Direct GHG emissions [A] [B] [C]

b Scope 2 emissions - market-based method [D] [E]

[A] Greenhouse gas emissions (GHG) comprise carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulphur hexafluoride and nitrogen trifluoride. The data are
calculated using locally regulated methods where they exist. Where there is no locally regulated method, the data are calculated using the 2009 API Compendium, which is the recognised
industry standard under the GHG Protocol Corporate Accounting and Reporting Standard. There are inherent limitations to the accuracy of such data. Oil and gas industry guidelines (IPIECA/
API/IOGP) indicate that several sources of uncertainty can contribute to the overall uncertainty of a corporate emissions inventory. We have estimated the overall uncertainty for our direct
GHG emissions to be around 4% for 2021.
[B] GHG emissions are calculated using Global Warming Potential factors from the IPCC’s Fourth Assessment Report.
[C] GHG emissions in this chart do not include carbon credits.
[D] We have restated our 2020 Scope 2 emissions from 9 to 8 million tonnes CO2e following a correction of an efficiency factor for steam at one of our assets and a revision to how internal
energy transfers of steam and electricity were accounted for at several of our assets to remove double-counting between Scopes 1 and 2.
[E] We have estimated the overall uncertainty for our Scope 2 emissions to be around 6% for 2021.

 More in this report Managing greenhouse gas emissions | Our Powering Progress targets | Letter from the CEO | Performance overview
 More on Shell websites Our strategy: Powering Progress | Our climate target | Our Climate Target: Frequently Asked Questions

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MANAGING GREENHOUSE GAS EMISSIONS

GREENHOUSE GAS EMISSIONS

POWERING PROGRESS
We aim to be net zero on emissions generated by our operations by 2050 or sooner, in step with society, as well as on emissions
associated with the energy we need to power them.
In October 2021, we announced an absolute emissions reduction target of 50% by 2030, compared with 2016 levels on a net
basis. This new target covers all Scope 1 and 2 emissions under Shell’s operational control and complements our existing carbon-
intensity targets.

Greenhouse gas emissions performance

Shell reduced Scope 1 and 2 emissions under its operational control from 83 million tonnes in 2016 to 68 million tonnes by the
end of 2021 (see Delivering our Climate targets).
Our direct (Scope 1) greenhouse gas (GHG) emissions decreased from 63 million tonnes of carbon dioxide (CO2) equivalent in
2020 to 60 million tonnes of CO2 equivalent in 2021.

DIRECT GREENHOUSE GAS EMISSIONS

million tonnes CO2e

100

50

0
12 13 14 15 16 17 18 19 20 21

This decrease was in part driven by the shutdown of the Shell Convent Refinery (USA) in late 2020, lower production at the Shell
Norco Manufacturing Complex (USA) due to Hurricane Ida, and divestments in 2020 and 2021, which included the Martinez
and Puget Sound refineries in the USA and the Fredericia refinery in Denmark. These decreases were partly offset by higher
emissions due to the restart of the Prelude floating liquefied natural gas (LNG) facility in Australia (which was shut down for most
of 2020) and increased flaring at Shell Nigeria Exploration and Production Company Limited (SNEPCo) in Nigeria.
In 2021, we implemented a variety of measures to reduce the energy use and increase the energy efficiency of our operations.
Examples of some of the principal measures taken in 2021 are listed in the 2021 Annual Report.

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SCOPE 1 AND SCOPE 2 GHG EMISSIONS CHANGES FROM 2020 TO 2021

million tonnes CO2e

75
71 0.0
70
b 2.7
c d e 68
65 (4.0) (2.2)
a
60

55
2020 2021

a Emissions [A] [B] d Change in output

b Acquisitions e Divestments and other reasons
c Reduction activities and purchased
renewable electricity [C] [D]

[A] Total Scope 1 and Scope 2 emissions, rounded to the closest million tonnes. Scope 2 emissions were calculated using the market-based method.
[B] We have restated our 2020 Scope 2 emissions from 9 to 8 million tonnes CO2e following a correction of an efficiency factor for steam at one of our assets and a revision to how internal
energy transfers of steam and electricity were accounted for at several of our assets to remove double-counting between Scopes 1 and 2.
[C] In addition to reductions from GHG abatement and energy efficiency projects, this category also includes reductions from permanent shutdown of the Convent and Tabangao refineries and
the impact of transformational activities at our Shell Energy and Chemicals Park in Singapore.
[D] Excludes 1.05 million tonnes of CO2 captured and sequestered by our Quest CCS project in Canada in 2021.

Our indirect greenhouse gas emissions associated with imported energy (Scope 2) were 8 million tonnes in 2021 (using the
market-based method), compared with 8 million tonnes in 2020.
We undertake external verification of our greenhouse gas emissions annually. Our 2021 Scope 1 and 2 greenhouse gas
emissions have been verified to a level of limited assurance. Limited assurance means nothing has come to the verifier’s attention
that would indicate that the greenhouse gas data and information as presented in the Greenhouse Gas Statement were not
materially correct.
Read our most recent assurance statements at www.shell.com/ghg.
 More in this report Climate change and the energy transition | Delivering our climate targets
 More on Shell websites Powering Progress – transitioning to net-zero emissions

ENERGY EFFICIENCY IN OUR OPERATIONS

One of the metrics we use to measure our performance is energy intensity: the amount of energy consumed for every unit of
output.

ENERGY INTENSITY – REFINING

Refinery Energy Index [A]

110

100

90
12 13 14 15 16 17 18 19 20 21

[A] Data are indexed to 2002, based on Solomon Associates Energy Intensity IndexTM methodology.

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The refinery energy intensity index increased from 96.1 in 2020 to 96.9 in 2021, in part due to the impact of Hurricane Ida in
the USA.

ENERGY INTENSITY – CHEMICAL PLANTS

Chemicals Energy Intensity – GJ/tonne production

30

15

0
12 13 14 15 16 17 18 19 20 21

Chemical steam cracker energy intensity in 2021 was 18.1 gigajoules per tonne (GJ/tonne) of high-value chemical (HVC)
production, down from 18.7 GJ/tonne HVC in 2020, in part due to good reliability and high utilisation at our Bukom chemical
plant in Singapore and Deer Park in the USA.

ENERGY INTENSITY – UPSTREAM

(excl. LNG and GTL) GJ/tonne production

0
12 13 14 15 16 17 18 19 20 21

In 2021, the overall energy intensity for the production of oil and gas in our Upstream and Integrated Gas businesses (excluding
liquefied natural gas and gas-to-liquids) remained relatively flat at 1.14, compared with 1.15 in 2020.
We expect it will be difficult to maintain the energy intensity levels of recent years, as existing fields age and new production
comes from more energy-intensive sources. This may increase our upstream energy intensity over time.
 More in this report Climate change and the energy transition | Sustainability at Shell | Our standards and policies
 More on Shell websites Our strategy: Powering Progress | Reducing Methane Emissions in Shale Oil and Gas | Greenhouse gas emissions

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METHANE EMISSIONS

POWERING PROGRESS
By 2025, we expect to have kept the methane emissions intensity of Shell-operated assets to below 0.2%.

Methane emissions performance

Shell’s methane emissions intensity target covers all Upstream and Integrated Gas oil and gas assets for which Shell is the
operator. In 2021, our methane emissions intensity averaged 0.06% for assets with marketed gas and 0.01% for assets without
marketed gas. Shell’s methane emissions intensity ranged from below 0.01% to 1.5% in 2021 compared with 0.01% to 0.6% in
2020.

METHANE (CH4) EMISSIONS

thousand tonnes

150

100

50

0
12 13 14 15 16 17 18 19 20 21

METHANE EMISSIONS BY SOURCE IN 2021 [A]

percentage

13%

13% d
40% a Venting and process
c a b Flaring
c Fugitive
d Combustion
b

35%
[A] Percentages do not add up to 100% due to rounding.

In 2021, Shell’s total methane emissions were 55 thousand tonnes compared with 67 thousand tonnes in 2020, in part due to
reduced methane emissions reported for Malaysia because we relinquished the operatorship of two complexes (E11PA and
E11PB) on December 31, 2020. We also implemented a more accurate method for calculating fugitive emissions at the Shell-
operated QGC natural gas facility in Australia. Methane emissions were less than 3% of Shell’s greenhouse gas emissions on a
CO2-equivalent basis in 2021. More than 65% of our reported methane emissions in 2021 came from flaring and venting in our
upstream and midstream operations.

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We encourage industry-wide action on methane emissions reduction by participating in voluntary initiatives.

For example, we participate in multi-stakeholder groups, such as the Methane Guiding Principles coalition, which we initiated in
2017, and the Oil and Gas Methane Partnership (OGMP) 2.0, which seeks to improve measurement and reporting. In 2021,
environmental organisations and energy companies, including Shell, developed policy recommendations to support European
Union (EU) legislation for ambitious methane emissions reductions across the supply chain of natural gas consumed within the
EU.
Read more about Shell and methane emissions at www.shell.com/energy-and-innovation/natural-gas/methane-emissions.
 More in this report Climate change and the energy transition | Managing greenhouse gas emissions | Wind | Integrated power
 More on Shell websites Our strategy: Powering Progress | Methane emissions | Reducing Methane Emissions in Shale Oil and Gas | Greenhouse gas emissions | Air Quality

FLARING

POWERING PROGRESS
We have committed to bringing forward the target to eliminate routine gas flaring from our Upstream operated assets from
2030 to 2025.

We are working to reduce flaring, which contributes to climate change and wastes valuable resources. We have committed to
bringing forward our target. This accelerates our commitment in 2015 to end routine flaring as a signatory to the World Bank’s
Zero Routine Flaring by 2030 initiative. All of Shell’s operated assets within the Integrated Gas business already comply with
zero routine flaring, as they were designed to gather gas resources to sell and avoid routine flaring.

Flaring performance
Flaring of gas in our Upstream and Integrated Gas businesses contributed around 7% to our overall direct greenhouse gas
(GHG) emissions in 2021.

FLARING – UPSTREAM HYDROCARBONS FLARED

million tonnes

0
12 13 14 15 16 17 18 19 20 21

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FLARING – UPSTREAM CO2 EQUIVALENT

million tonnes CO2e

20

10

0
12 13 14 15 16 17 18 19 20 21

Gas routinely produced with oil, known as associated gas, may be flared. In 2021, around 17% of greenhouse gas emissions
from flaring occurred at facilities where there was no infrastructure to capture the gas (down from around 24% in 2020). Overall
flaring increased to 4.5 million tonnes of carbon dioxide equivalent (CO2e) in 2021 from 3.8 million tonnes of carbon dioxide
equivalent in 2020.
Around 60% of flaring in our Upstream and Integrated Gas facilities in 2021 occurred in assets operated by the Shell Petroleum
Development Company of Nigeria Limited (SPDC) and Shell Nigeria Exploration and Production Company Limited (SNEPCo).
Flaring from SPDC-operated facilities increased by around 5% in 2021 compared with 2020. Flaring at SNEPCo-operated
facilities increased by 160% in 2021 compared with 2020. This was because repairs to a flexible joint on the gas export riser on
the Bonga deep-water floating production, storage and offloading (FPSO) facility took longer than planned. A large amount of
gas was therefore flared while the FPSO continued to produce oil.
Read more about our flaring reduction commitment at www.shell.com/inside-energy/zero-routine-flaring-by-2025.
 More in this report Climate change and the energy transition | Energy transition | Managing greenhouse gas emissions
 More on Shell websites Our strategy: Powering Progress | Reducing Flaring in Shale Oil and Gas | External voluntary codes | Air Quality

SECTORAL DECARBONISATION

POWERING PROGRESS
Working with our customers and across sectors to accelerate the transition to net-zero emissions.

We are helping our customers to find ways to reduce their overall carbon footprint, including in sectors that are difficult to
decarbonise such as aviation, shipping, road freight and industry. For example, we have an ambition to produce around 2 million
tonnes of sustainable aviation fuel (SAF) a year by 2025 and increase its share to at least 10% of our global aviation fuel sales
by 2030.
To help accelerate the transition to net-zero emissions, we will build on existing relationships with other stakeholders, such as
energy suppliers, policymakers, infrastructure owners and consumers to support a sector-based approach. Transforming energy
demand is the focus of our decarbonisation strategy. We are working with customers sector-by-sector across the energy system
and will change the mix of energy products we sell to meet their changing energy demands.
Read more about sectoral decarbonisation at www.shell.com/energy-and-innovation/the-energy-future/cutting-carbon-together-
sector-by-sector and in the Energy Transition Report at www.shell.com/SET.
 More in this report Climate change and the energy transition
 More on Shell websites Our strategy: Powering Progress | Reducing Methane Emissions in Shale Oil and Gas | Greenhouse gas emissions

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REALISING THE ROLE OF NATURE

POWERING PROGRESS
Our aim is to use nature-based solutions to mitigate emissions of around 120 million tonnes of CO2 per year by 2030.

Nature-based solutions (NBS) conserve, enhance and restore ecosystems – such as forests, grasslands and wetlands – to
prevent greenhouse gases or reduce atmospheric CO2 levels. NBS provide benefits for people and the environment by
preserving biodiversity, preventing floods, improving air quality and building more resilient and healthy communities.
Carbon credits generated from NBS projects can be used by Shell to compensate for our own emissions and to allow our
customers to offset their emissions in line with the mitigation hierarchy of avoid, minimise and offset. As part of our selection
criteria for NBS, we look for projects that will have a net positive impact for biodiversity and communities.
Carbon credits can also be generated by other types of projects, for example cookstoves. Better cooking facilities that displace
open fires reduce carbon emissions, prevent local deforestation and improve air quality and therefore health.
In 2021, we aimed to invest around $100 million in nature-based solutions such as forests and wetlands that store carbon.
Projects may need different levels of funding at different stages of development. In 2021, investments were also affected by
COVID-19, as site visits to potential projects were not possible. Establishing our new NBS team following a reorganisation also
took some time. Nevertheless, in 2021, we allocated more than $480 million to various projects, to be deployed across the
length of the contracts. More than 95% of this funding is for NBS projects. We deployed $37 million in 2021: $26 million for
NBS and $11 million for cookstove projects and we retired around 6 million credits on behalf of our customers. These numbers
exclude direct carbon trading activities.
In November 2021, Shell published its "Ensuring high-quality nature-based carbon credits" report that sets out our expectations
and approach to quality across our NBS portfolio.
In 2021, we expanded our offer of carbon credits to drivers and business customers who wish to compensate for the life-cycle
CO2-equivalent emissions generated by their use of the Shell fuel they buy. We have made this offer available to our fleet
customers in 17 countries and to retail customers at more than 3,100 service stations in Austria, Canada, Germany, Hungary, the
Netherlands, Switzerland and the UK.
Read more about nature-based solutions at www.shell.com/energy-and-innovation/new-energies/nature-based-solutions.
 More in this report Climate change and the energy transition | Carbon capture and storage | Managing greenhouse gas emissions | Energy transition
 More on Shell websites Our strategy: Powering Progress | Nature-based solutions

CARBON CAPTURE AND STORAGE

POWERING PROGRESS
We seek to have access to an additional 25 million tonnes a year of carbon capture and storage (CCS) capacity by 2035 –
equal to 25 CCS facilities the size of our Quest site in Canada.

Shell’s ambition is to work with governments, customers and partners to unlock the potential for CCS to reduce emissions where
there are no currently scalable low-carbon alternatives. In 2021, Shell's operating costs for and investment in CCS opportunities
amounted to around $146 million.
By the end of 2021, our Quest CCS project in Canada (Shell interest 10%) had captured and safely stored more than 6.5 million
tonnes of CO2 since it began operating in 2015. In Australia, the Gorgon CCS project (Shell interest 25%, operated by
Chevron), which started operating in August 2019, had stored more than 5 million tonnes of CO2 by the end of 2021. Gorgon is
the largest CCS operation in the world.
The Gorgon CCS system has presented some challenges, which resulted in a carbon injection shortfall. The operator continues to
work with the regulator and the venture partners, including Shell, to make adjustments where needed. The JV announced the

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implementation of a package that includes greenhouse gas offset credits and investment in lower-carbon projects to compensate
for the shortfall.
Read more about our CCS projects at www.shell.com/ccs.

CCS projects
Total capacity
(100%), million
Shell Shell tonnes per
Project CO2 source Country involvement interest annum Shell-operated

CCS projects in operation

Technical
developer,
Alberta, Operator,
Quest Bitumen upgrading Canada JV partner 10% 1 mtpa Yes
Gorgon CO2 in gas Australia JV partner 25% Up to 4 mtpa No
Technology Centre Mongstad
(TCM) test and research Gas-fired power, refining
facility and chemical production Norway JV partner 8.7% Test site No

CCS projects under construction

Northern Lights (Phase 1) Industrial sources Norway JV partner 33.3% 1.5 mtpa No

CCS projects pre-FID options

Technical
developer,
Acorn Industrial sources Scotland, UK JV partner 30% Around 6 mtpa No
No – transport
Aramis Industrial sources Netherlands JV partner 25% 5 mtpa Yes – storage
Teesside and
Northern Endurance Humberside,
Partnership Industrial sources UK JV partner TBC 4 mtpa No
Refining and chemical Alberta,
Polaris production Canada Operator TBC 0.75 mtpa Yes
Operator
South Wales Industrial Cluster Industrial sources Wales, UK JV partner TBC 1.5 mtpa Yes
Pernis CO2 capture (for 1.15 mtpa Yes – capture
transport and storage by the Refining and chemical CO2 (Shell No – transport
third-party Porthos project) production Netherlands capture 100% capacity) and storage
0.5 mtpa
Pernis SPeCCS Refining and chemical CO2 (Shell
CO2 capture expansion production Netherlands capture 100% capacity) TBC

 More in this report Climate change and the energy transition | Realising the role of nature | Energy transition
 More on Shell websites Our strategy: Powering Progress | Carbon Capture: The technology we cannot afford to ignore

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PROVIDING LOWER-CARBON ELECTRICITY

INTEGRATED POWER

POWERING PROGRESS
We aim to increase our power sales to 560 terawatts a year by 2030.

For consumers and business customers to decarbonise their activities, lower-carbon electricity will be part of their energy mix.
We believe Shell can become a leading provider of clean power.
In 2021, we sold 251 TWh of power and cash capital expenditure in Renewables and Energy Solutions amounted to $2.4
billion. In 2022, we aim to invest $3 billion in our Renewables and Energy Solutions business.
By 2030, we aim to supply electricity to more than 15 million retail and business customers worldwide and increase our power
sales to 560 terawatt hours a year.
We are providing more renewable and low-carbon energy options for customers through investments in wind, solar, electric
vehicle charging, hydrogen, and more.
In 2021, we signed a number of deals to supply businesses with renewable electricity, including with Amazon and T-Mobile US.
Shell is also supplying Microsoft with renewable energy as part of our strategic alliance launched in 2020 to accelerate
innovation in support of decarbonisation.
Find out more about our power business in the Annual Report.
Read more about lower-carbon and renewable power at www.shell.com/res.

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OFFERING CUSTOMERS LOWER-CARBON AND RENEWABLE ENERGY SOLUTIONS

a selection of investments, acquisitions and ventures

▪ Unveiled Qabas solar plant, Oman ▪ Signed Letter of intent to ▪ Acquired ubitricity, UK
2021 ▪ Signed deals to build two solar photo- build a 100 MW hydrogen ▪ Launched EV mobility hub in Paris,
voltaic projects (pre-FID), UK electrolyser, Germany France
▪ Acquired Savion, USA ▪ Signed MoU with BlueScope to build
SOLAR ▪ Acquired solar-konzept Italia, Italy Hydrogen a 10 MW electrolyser, Australia Mobility
▪ Opened heavy-duty hydrogen
stations, USA

▪ Partnered with Simply Blue Group to ▪ Acquired Next Kraftwerke, Germany

develop Emerald and Western Star ▪ Acquired Inspire Energy Capital, USA
floating wind projects, Ireland ▪ Announced Powershop acquisition,
▪ Shell and CoensHexicon formed the Australia (completed 2022)
Wind MunmuBaram JV for a 1.3 GW Trading
floating wind project, South Korea

▪ Final investment decision to build ▪ Masabi*, UK ▪ Shell and Eneco awarded tender to
Gangarri solar farm, Australia ▪ InstaFreight*, Germany build 759 MW Hollandse Kust
▪ Spiffy*, USA (noord) offshore wind farm, NL
2020
SOLAR Mobility Wind

▪ Select Carbon, Australia ▪ Announced plans to build 20 MW ▪ Palmetto*, USA

▪ Climate Bridge*, China hydrogen electrolyser and refuelling ▪ GreenCom*, Germany
stations, China
▪ ZeroAvia*, USA
NBS [A] Hydrogen ▪ Opened hydrogen bus station, NL ENERGY
SOLUTIONS

▪ Acquired Greenlots, USA ▪ Acquired EOLFI, France ▪ Acquired sonnen, Germany

(now Shell Recharge Solutions) ▪ Joint Development Agreement with ▪ Acquired Hudson Energy, UK
▪ Ravin.ai*, UK CoensHexicon, South Korea (rebranded to Shell Energy Retail
2019 ▪ Revel*, USA in 2020)
Mobility ▪ Aurora*, USA Wind ENERGY ▪ LO3 Energy*, USA
▪ Nordsol*, NL SOLUTIONS ▪ Corvus Energy*, Norway

▪ Nature-based solutions projects under ▪ Orb Energy*, India ▪ Acquired ERM Power, Australia
way in Australia, Malaysia, ▪ PowerGen*, Kenya (rebranded to Shell Energy in 2020)
Netherlands, Spain and UK ▪ d.light*, Kenya ▪ Acquired Limejump, UK

NBS [A] ENERGY Trading

ACCESS

▪ ESCO Pacific*, Australia ▪ Announced plans to build Rheinland

▪ Cleantech Solar*, Asia hydrogen electrolyser, Germany
▪ Opened Moerdijk solar farm, NL ▪ Opened hydrogen stations, Germany
and Luxembourg
SOLAR Hydrogen

▪ Silicon Ranch*, USA ▪ Atlantic Shores Offshore Wind*, USA ▪ Shell Energy Inside, USA
▪ Mayflower Wind Energy*, USA ▪ Shell Energy Retail, UK
▪ TetraSpar*, Norway (acquired as First Utility)
2018
SOLAR Wind ENERGY
SOLUTIONS

▪ Opened light-duty hydrogen stations ▪ Husk Power*, India ▪ Ample*, USA

in California, USA, and Canada ▪ SunFunder*, Kenya
▪ HyET Hydrogen*, NL

Hydrogen ENERGY Mobility

ACCESS

▪ Acquired NewMotion, NL ▪ Innowatts*, USA ▪ SolarNow*, Uganda

(now Shell Recharge Solutions) ▪ SteamaCo*, Kenya
▪ Connected Freight*, Philippines ▪ Sunseap*, Singapore
2017
Mobility ENERGY ENERGY
SOLUTIONS ACCESS

▪ Acquired MP2 Energy, USA ▪ Opened light-duty hydrogen

station, UK

[A] Nature-based Solutions

Trading Hydrogen * Minority investments

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WIND
We have wind power interests in several countries, including onshore in the USA and off the coasts of the USA and the
Netherlands. We are expanding our wind power activities to make more renewable electricity available to our customers. This
includes developing wind projects on floating platforms in deeper waters off the coasts of Ireland, Scotland, France, Norway
and South Korea.
At the end of 2021, the Shell share of total installed capacity combined from onshore and offshore wind was 466 megawatts
alternating current (MWac), with a further Shell share of 838 MWac under construction.
Read more about wind power at www.shell.com/wind.

Wind projects at the end of 2021

Shell Total capacity (100%),
Project Theme Country interest MWac Shell-operated

Wind projects in operation [A]

Brazos, TX Onshore USA 100% 160 Yes
Whitewater Hill, CA Onshore USA 50% 61.5 No
Cabazon Pass, CA Onshore USA 50% 41 No
Blauwwind [B] Offshore Netherlands 20% 731.5 JV-operated
NoordzeeWind [C] Offshore Netherlands 100% 108 JV-operated

Wind projects under construction

Brazos Repower [D] Onshore USA 100% 182 Yes
CrossWind [E] Offshore Netherlands 80% 759 JV-operated
Pottendijk (wind) Onshore Netherlands 100% 50 Yes

Wind projects pre-FID options (including seabed licences)

4+
countries More than 8 GWac Shell- and JV-
25+ projects [F] Onshore and offshore [G] Varies [E] [F] operated options

[A] Rock River wind farm in the USA (50 MW, Shell interest 50%) closed down at the end of 2021 and is not included.
[B] Brazos Repower represents the complete replacement of the Brazos turbines, increasing capacity from 160 MW to 182 MW.
[C] Offshore options include GBI, Mayflower, Atlantic Shores and MunmuBaram pre-FID seabed licenses.
[D] Including France, South Korea, the USA and now the UK.
[E] In addition, in January 2022, Shell and ScottishPower secured joint offers for seabed rights to develop MarramWind and CampionWind, large-scale floating
wind farms representing a total of 5 gigawatts (GW) off the east and north-east coast of Scotland.
[F] Also, in February 2022, the proposed total capacity for the Atlantic Shores project was increased from 3,000 MW to 4,500 MW."

 More in this report Providing access to energy | Energy transition

 More on Shell websites Powering Progress – transitioning to net-zero emissions | Electricity | Wind power | Solar

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SOLAR
We are expanding our solar power generation capability by investing in the development and operation of long-term
commercial and industrial solar projects, including at our own sites. At the end of 2021, our share of installed solar power
capacity was 734 megawatts direct current (MWdc), with 1,484 MWdc under construction.
Read more about solar power at www.shell.com/solar.

Solar projects at the end of 2021

Shell Total capacity
Project Country interest (100%), MWdc Shell-operated

Solar projects in operation

Silicon Ranch [A] USA 46.72% 1,130 No
Cleantech Solar Asia-Pacific 24.50% 364 No
Moerdijk Netherlands 100% 27 Yes
Sohar Solar Quabas Oman 100% 34 Yes
Emmen Netherlands 100% 12 Yes
Heerenveen Netherlands 100% 14.5 Yes
Sas van Gent Netherlands 100% 30 Yes

Solar projects under construction

Gangarri Australia 100% 144 Yes
Silicon Ranch [A] USA 46.72% 2,487.90 No
Cleantech Solar Asia-Pacific 24.50% 228.4 No
Pottendijk (solar) Netherlands 100% 50 Yes
Koegorspolder Tractaatweg Netherlands 100% 41 Yes
Koegorspolder Sluiskil [B] Netherlands 100% 31 Yes

Solar projects pre-FID options

200+ projects 14 countries [C] Varies Around 30 GWac Varies

[A] The Silicon Ranch diluted equity share is now 44.33% following an equity raise that completed in February 2022.
[B] Koegorspolder Sluiskil moved into construction in February 2022.
[C] Including Brazil, China, France, Germany, India, Italy, Japan, Netherlands, Oman, Philippines, Singapore, Spain, UK, USA.

 More in this report Providing access to energy | Energy transition

 More on Shell websites Powering Progress – transitioning to net-zero emissions | Electricity | Wind power | Solar

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FUELLING MOBILITY
BIOFUELS

POWERING PROGRESS
Our aims include producing:
Eight times more low-carbon fuels than in 2021 by 2030 (including Raízen production)
Around two million tonnes of sustainable aviation fuel a year by 2025

We are producing and supplying low-carbon fuels such as biodiesel, bioethanol, renewable natural gas (also known as RNG,
biogas or biomethane), renewable diesel (also known as hydrotreated vegetable oil or HVO) and sustainable aviation fuel to
help lower the carbon emissions from transportation. These fuels can be blended with existing fuels, such as gasoline and
aviation fuel, and do not require costly investment in new infrastructure, which means they are a practical option for reducing
transport emissions.
The Raízen joint venture (Shell interest 44%, not Shell-operated) in Brazil is one of the world’s largest biofuel producers, with one
of the lowest-CO2 biofuels available today. In 2021, Raízen produced around 2.5 billion litres of ethanol from sugar cane. In
2021, Raízen’s Costa Pinto mill in Brazil also produced 19 million litres of second-generation cellulosic ethanol made from
inedible agricultural waste or forestry products.
In September 2021, we announced a final investment decision to build an 820,000-tonnes-a-year biofuels facility at the Energy
and Chemicals Park Rotterdam, the Netherlands, which was formerly known as the Pernis refinery.
In 2021, around 9.1 billion litres of biofuels went into Shell’s petrol and diesel worldwide, which included 3.2 billion litres through
our joint venture Raízen on an equity basis. In 2020, around 9.5 billion litres of biofuels went into Shell’s petrol and diesel
worldwide.

GLOBAL BIOCOMPONENT PURCHASE BY FEEDSTOCK [A]

percentage

2%
1%
1%
2% a Corn
6%
b Waste
c Palm oil
7%
e f
ghi d Soy bean
d e Rapeseed
f Molasses
9% c
a g Other
55%
h Sugar cane
b
i Blended feedstock

17%

[A] Does not include purchases by Raízen.

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Sustainability of biofuels
We purchase biocomponents to blend into fuels and/or to trade. Some biofuel feedstocks are considered higher risk with regard
to human rights, biodiversity or the release of carbon into the atmosphere. To help mitigate these risks, all the palm oil, sugar
cane and South American soy feedstock we purchase is certified as sustainable under credible sustainability standards like the
Round Table on Responsible Soy, the Roundtable for Sustainable Palm Oil and Bonsucro.
Read more about our approach to the sustainable sourcing of biocomponents.
Read more about biofuels at www.shell.com/biofuels.

Sustainable aviation fuel

We have the ambition to produce around 2 million tonnes of sustainable aviation fuel (SAF) a year by 2025 and aim to have at
least 10% of our global aviation fuel sales as SAF by 2030.
Read more about SAF at www.shell.com/business-customers/aviation/the-future-of-energy/sustainable-aviation-fuel.

Renewable natural gas

As cleaner-burning fuels than diesel, liquefied natural gas (LNG) and bioLNG can help the road transport industry lower
emissions and costs. In 2021, we planned to grow our European LNG refuelling stations to 50 sites by the end of 2021 for
bioLNG distribution. By the end of the year, we had 44 Shell-branded LNG refuelling stations across seven countries. This is an
increase on the 26 stations we had in 2020. As we grow our LNG refuelling network, we aim to offer bioLNG as a blend for
further emissions reductions for our customers.
Read about LNG at www.shell.com/energy-and-innovation/natural-gas/lng-for-transport/lng-for-road.
Read about renewable natural gas at www.shell.com/energy-and-innovation/new-energies/low-carbon-fuels.
 More in this report Climate change and the energy transition | Driving innovation
 More on Shell websites Powering Progress – transitioning to net-zero emissions | Low carbon fuels | Hydrogen

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ELECTRIC VEHICLE CHARGING

POWERING PROGRESS
Our targets include operating:
more than 500,000 EV charge points by 2025, of which more than 30,000 charge points are owned directly by Shell
around 2.5 million EV charge points by 2030

Today we operate around 87,000 public and private electric vehicle (EV) charge points, including almost 8,000 public charge
points at Shell service stations, on-street and at destinations like supermarkets. In 2020, we operated around 60,000 electric
vehicle charge points.
In China, for example, Shell already operates more than 850 public charge points at Shell service stations as well as dedicated
EV Mobility Hubs. In 2021, we announced an ambition to install 50,000 on-street EV charge posts in the UK by the end of
2025, through ubitricity, part of the Group.
Read about electric vehicle charging at www.shell.com/electric-vehicle-charging.
 More in this report Climate change and the energy transition | Driving innovation
 More on Shell websites Powering Progress – transitioning to net-zero emissions | Low carbon fuels | Hydrogen

HYDROGEN

POWERING PROGRESS
Our ambition is to capture a double-digit share of global clean hydrogen sales by 2035.

Hydrogen is a versatile energy carrier that can play a significant role in the transition to a lower-carbon world. We are investing
in producing decarbonised hydrogen for our own facilities and, in the future, for customers in industry and mobility where direct
electrification is challenging.
In 2021, we started production at the electrolyser at our Shell Energy and Chemicals Park Rheinland in Germany. The 10
megawatts (MW) proton exchange membrane (PEM) electrolyser uses renewable energy to produce up to 1,300 tonnes of
decarbonised hydrogen a year, which we are using to make lower-carbon fuels at the park. Our joint venture Zhangjiakou City
Transport and Shell New Energy Co., Limited (Shell interest 47.5%) started up a hydrogen electrolyser in China with 20 MW
production capacity in January 2022.
We are also expanding the network of hydrogen refuelling stations. By the end of 2021, there were around 50 hydrogen
refuelling stations at Shell-branded outlets in the USA (California), Canada, Germany, the Netherlands and the UK.
Read about hydrogen at www.shell.com/hydrogen.
 More in this report Climate change and the energy transition | Driving innovation
 More on Shell websites Powering Progress – transitioning to net-zero emissions | Low carbon fuels | Hydrogen

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DRIVING INNOVATION
In 2021, we spent $815 million on research and development (R&D), compared with $907 million in 2020. In 2021, we started
work on 182 R&D projects with universities, compared with 124 in 2020.
Our R&D activities are key to achieving our net-zero emissions target, in step with society. In 2021, our R&D expenditure on
projects that contributed to decarbonisation was around $328 million, representing around 40% of our total R&D spend. This
includes expenditure on reducing greenhouse gas emissions:
from our own operations, for example by improving energy efficiency and electrification;
from the fuels and other products we sell to our customers, for example biofuels, and synthetic fuels and products made from
low-carbon electricity, hydrogen produced using renewable sources or using natural gas combined with carbon capture
utilisation and storage (CCUS);
by CCUS; and
by creating nature-based solutions (NBS) to offset emissions.

Read more about technology and innovation at www.shell.com/energy-and-innovation/the-role-technology-plays/technology-

for-a-sustainable-energy-industry.
 More in this report Sectoral decarbonisation | Fuelling mobility
 More on Shell websites Powering Progress – transitioning to net-zero emissions

39 Shell Sustainability Report 2021