Shell Shifts Gear: 1,000 Gas Stations to Close for EV Charging Expansion

In a bold move towards sustainability, Shell announced plans to shutter up to 1,000 gas stations globally by 2025 to pave the way for an extensive electric vehicle (EV) charging network. Aiming to increase its charging points to 200,000 by 2030, the company focuses on enhancing public charging facilities over home solutions, leveraging its vast retail network.

Shell Accelerates Transition: Plans Major Shift to EV Charging Amidst Strategic Overhaul

In its most recent Energy Transition Strategy report (via Teslarati), Shell, based in England, intends to close 500 retail sites annually between 2024 and 2025. The company plans to expand its public EV charging network and increase the number of charging points to 200,000 by 2030, up from around 54,000 today.

"In total, we plan to divest around 500 Shell-owned sites (including joint ventures) a year in 2024 and 2025," the company wrote on page 28 of the document, as first reported by Bloomberg.

The company has also stated that it intends to focus on public charging stations rather than home charging due to competitive advantages in the industry.

"We are focusing on public charging, rather than home charging, because we believe it will be needed most by our customers," Shell said. "We have a significant competitive advantage in terms of locations, as our global network of service stations is one of the largest in the world."

"We have other competitive advantages, such as our convenience retail offering which allows us to offer our customers coffee, food, and other convenience items as they charge their cars. As we grow our business offering charging for electric vehicles, we expect an internal rate of return of 12 percent or higher," the company added.

The company's recent energy transition strategy also softens some carbon emissions targets for the next ten years while remaining committed to achieving net-zero carbon by 2050. The company also intends to invest $10 to $15 billion in low-carbon energy solutions between 2023 and 2025.

The report also mentions the company's plans to support critical oils used in offshore wind and the development of electric vehicle batteries.

"We are growing our premium lubricants portfolio to supply key energy transition sectors such as transformer oils used for offshore wind parks and cooling fluids to support the development of electric vehicle car batteries," Shell stated.

Shell Expands EV Reach: Acquires Volta, Boosts Public Charging Network Presence

Shell acquired the U.S. EV charging network Volta Charge last year and the company has signed dozens of other partnerships to support EV charger deployment in recent years. According to a recent National Renewable Energy Laboratory (NREL) report, the company's charging network, Shell Recharge, accounted for approximately 1.7% of the public DC fast-charging network in the United States as of the third quarter of last year.

Shell also shared a video detailing the 2024 transition strategy.

Tesla remained the dominant market leader with its Supercharger network, accounting for 61.7% of those in the United States. Superchargers were previously only available to Tesla EV owners, but automakers have recently made them available to other brands, beginning with Ford and Rivian.

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