November 26, 2024, Malaysia – Shell Malaysia has announced a significant initiative aimed at achieving net-zero emissions by 2050. The project involves the installation of solar panels on over 600 retail sites, with a total capacity of 20 MWp, expected to generate 25,550 MWh of clean energy annually, sufficient to power 7,392 households.
The solar transition is set for completion by next year, contributing to Shell's goal to cut Scope 1 and Scope 2 emissions by 50% by 2030, using 2016 as the baseline year.
Shell has partnered with Progressture Power under a Power Purchase Agreement (PPA) for this initiative. Progressture Power will own and operate the solar systems, aiming to reduce carbon emissions by 19,366 tons annually. The company plans to expand its renewable energy portfolio to 1.5 GW across Southeast Asia in the next five years.
Despite this commitment, Shell has recently adjusted its long-term climate targets, including a reduction in its 2030 net carbon intensity reduction goal from 20% to a range of 15%-20%. This shift has attracted criticism from environmentalists, who view it as a retreat from its climate commitments.
While Shell and other oil companies have reported record profits, the renewable energy sector faces declining returns. In response to investor pressure, Shell has exited offshore wind and low-carbon energy projects, raising concerns about its sustainability priorities even as it promotes solar initiatives in Malaysia.