A Shell station in Canada. Credit: Raysonho @ Open Grid Scheduler / Grid Engine.

Energy giant Shell has unveiled a new strategy to accelerate its transformation to a net-zero emissions energy products and services provider.

The updated strategy outlines the plan to transform into a net-zero emissions energy business by 2050, aligned with the goals of the Paris climate agreement.

The plan encompasses the emissions from its operations, as well as from the use of all of the energy products that the company sells. It also includes emissions from the oil and gas that others produce but which Shell sells to the customers.

Shell noted that its total carbon emissions peaked in 2018 at 1.7 gigatonnes per annum. It will undertake short-term target objectives to reduce carbon emissions to advance towards its 2050 goal.

The company’s oil production peaked in 2019 and is now expected to recede by 1% to 2% annually.

Separately, the Anglo-Dutch company will reduce its refinery footprint from 13 locations to six chemicals and energy parks, reducing traditional fuel production by 55% by 2030.

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In the same period, it aims to boost the chemicals portfolio and increase cash generation from the sector by $1bn-2bn annually compared with the medium term.

Shell also intends to provide more focus on low carbon businesses and aims to sell around 560 terawatt hours of power a year by 2030.

It will also invest around $100m annually in projects to help its customers meet their net-zero emissions targets and support the development of integrated hydrogen hubs.

Royal Dutch Shell CEO Ben van Beurden said: “Our accelerated strategy will drive down carbon emissions and will deliver value for our shareholders, our customers, and wider society.

“We must give our customers the products and services they want and need, products that have the lowest environmental impact.

“At the same time, we will use our established strengths to build on our competitive portfolio as we make the transition to be a net-zero emissions business in step with society.”

In December last year, Shell signed deal to divest a minority stake in Queensland Curtis LNG (QCLNG) Common Facilities in Australia for $2.5bn.