Shell Energy Partners with Hydro to Decarbonize UK Operations
Posted 14/09/2023 11:10
Shell Energy UK Limited has entered into a three-year agreement with Norsk Hydro ASA to assist in decarbonizing its UK operations. Under this agreement, Shell Energy will annually supply 144 gigawatt hours of natural gas and 56 gigawatt hours of renewable electricity to Hydro's UK sites.
Key points of the agreement:
Renewable Electricity: Shell Energy will provide electricity backed by Renewable Energy Guarantees of Origin (REGO) certificates generated from the Rhyl Flats Windfarm, an offshore wind project located 8 km off the coast of Llandudno, with a 90MW installed capacity. This move allows Shell Energy to help its customers transition toward net-zero emissions by offering 100% renewable electricity.
Hydro's Sustainability Commitment: Hydro, a global leader in various industries including aluminium production, energy, recycling, renewables, and battery manufacturing, is dedicated to advancing sustainability. The company aims to reduce the carbon intensity of its products and accelerate its transition to net-zero emissions.
Long-Term Collaboration: The partnership aims to be more than just a transactional agreement. Shell Energy and Hydro seek to establish a long-term strategic collaboration to facilitate Hydro's journey toward sustainability.
Lars Lysbakken, Energy Portfolio Manager at Hydro, highlighted the importance of this collaboration, emphasizing the alignment of Shell Energy's understanding of Hydro's business and sustainability goals. Hydro's operations will be powered entirely by asset-specific renewable electricity, including the use of REGO certificates from the Rhyl Flats Offshore Wind Farm.
In 2022, Shell invested $4.3 billion in low-carbon energy solutions and reduced its own Scope 1 and 2 absolute emissions by 30%. The company is committed to transforming the energy system by promoting renewable electricity, developing low and zero-carbon alternatives to traditional fuels, collaborating with customers to decarbonize energy use, and addressing remaining emissions through solutions like carbon capture and storage and carbon credits.
Greg Kavanagh, Head of Industrial and Commercial Sales at Shell Energy, views these agreements as opportunities for long-term strategic collaborations that accelerate customers' progress toward achieving net-zero emissions. Shell Energy's partnership with Hydro aligns with Hydro's sustainability ambitions and signifies a step toward a more sustainable energy future.