Shell (RDS.A) Announces Plans on EV Charging Expansion in UK
Shell (RDS.A) will assist the local administration in the UK cities and states by committing to cover the upfront installation costs that are not fund...
Royal Dutch Shell plc. (RDS.A) recently announced that it will expand its network of electric-vehicle charging stations in the United Kingdom on a wider scale to meet its goal of installing 50,000 on-street stations by 2025. This is part of its attempt to provide one-third of the network required to meet national climate change targets. Shell aims to realize its plans through the recently acquired Ubitricity, one of the largest electric vehicle (EV) charger providers in the UK in terms of individual devices in operation.
This expansion is part of the UK government initiative to rapidly expand the country's electric vehicle (EV) fleet to achieve net-zero carbon emissions by 2050. Within 2030, the United Kingdom intends to prohibit the sale of new petrol and diesel vehicles.
Shell will assist the local administration in the UK cities and states by committing to cover the upfront installation costs that are not funded by the central government grants and are subject to commercial terms. While the government agreed to cover 75% of the price of installing on-street chargers, Shell stated that it will chip in the remaining 25%.
The energy player also mentions statistics indicating that 60% of the households in the UK cities and urban regions lack their own parking places, forcing EV drivers to park and charge on the side of the road. “It’s vital to speed up the pace of EV charger installation across the UK and this aim and financing offer is designed to help achieve that. Whether at home, at work or on the go, we want to give drivers across the UK accessible EV charging options, so that more drivers can switch to electric”, asserted David Bunch, U.K. country chair, Shell.
Ubitricity was purchased by Shell in January this year, and the transaction was completed in February. The energy behemoth also chalked out plans to increase the number of charging stations from 60,000 to 500,000 by 2050. In April, the UK was given a target of 5,000 charging stations. Good news is that the same number rose significantly today, courtesy of the Ubitricity offer. Ubitricity is most recognised for its lamppost-integrated on-street charging stations.
Shell’s EV Push
Shell’s expansion into the EV charging business is part of its plans to tap the growing popularity of pure energy resources and lower the company’s carbon footprint. The company expects electricity demand to rise in the coming years with more people opting for electric vehicles and switching to cleaner energy resources.
Last October, management announced that the company increased the usage of Shell E-Fluids — its global portfolio of specialized fluids — to battery-electric (BEV) plus fuel-cell electric (FCEV) powertrains for commercial light-, medium- and heavy-duty vehicles. The specialized E-fluids, accelerated by high temperature, provide oxidation stability to prevent any oil changes.
This apart, Shell is collaborating with the commercial vehicle sector to help ensure decarbonisation pathways through Shell E-Fluids as the road transport sector emits 8% of global energy-related carbon dioxide. Per Shell, both BEV and FCEV solutions have a major role to play as the paths and timelines for road freight carbon depletion will differ by geography, sector and duty sector.
Shell belongs to a global group of energy and petrochemical companies. It is involved in all phases of the petroleum industry right from exploration to final processing and delivery. The company is scheduled to release third-quarter earnings results on Oct 28, 2021. The current Zacks Consensus Estimate for earnings is pegged at $1.37 per share for the to-be-reported quarter.
Zacks Rank & Key Picks
Shell currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Devon Energy Corporation DVN, Matador Resources Company MTDR and Continental Resources, Inc. CLR, each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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