Shell: New CEO, New Strategy

Starting in January, Shell will welcome a new CEO. He will have the difficult task of accelerating the group's energy transition. While oil and gas are still important to the company, it intends to develop renewable energies to catch up.

Partagez:

Shell is making a major strategic shift. Wael Sawan will be the new CEO of Shell as of January 1. It should accelerate the company’s efforts to develop renewable energy. Shell has been able to take advantage of the surge in energy prices, but its renewable energy capacity is limited.

Thus, W. Sawan will have the heavy task of catching up. The company aims to reduce its greenhouse gas emissions by half by 2030. By 2050, Shell aims to be a net zero emitter. It has already launched measures in this direction.

Accelerating the energy transition

Wael Sawan must therefore develop his strategy, the one that will propel Shell on the path of renewable energy and energy transition. According to a company spokesperson, he is expected to continue the strategy he launched in his current role. One thing is for sure, its “implementation will be as dynamic under the new CEO as it has been under the current one”.

Nevertheless, some sources believe that the new CEO will go even faster on the energy transition. W. Sawan should, in fact, expand Shell’s renewable energy portfolio.

The task is then complicated. In fact, his predecessor reaffirmed Shell’s major role in the LNG sector as soon as he arrived. Thus, in 2014, it acquired BG Group for $53 billion. As a result, Shell remains highly dependent on oil and gas. Its renewable energy and energy solutions division accounted for only 6% of the group’s Q2 profits.

Wael Sawan, symbol of Shell’s transition?

Shell has been developing a new strategy for the past few months. In fact, Wael Sawan and Ben van Beurden want to develop wind and solar energy production. Thus, a strategic shift seems to be taking place.

In August, Shell announced theacquisition of Sprng Energy for $1.55 billion. An Indian company specializing in renewable energy, it has a portfolio of over 10 GW of projects. These are in the process of being acquired, or still to be built. This acquisition allows Shell to triple its capacity, overtaking BP.

This acquisition symbolizes the turning point in Shell’s strategy, embodied by the arrival of W. Sawan as CEO. Until now, Shell has simply purchased low-carbon electricity for resale.

Within the company, a source comments:

“It’s a big change for us to say that we now have to get into renewable energy generation. We need a long period of renewable energy generation for our commercial capabilities and to meet our customers’ needs.”

While the task ahead is complicated, Wael Sawan can rely on the group’s strong record. Thus, it can engage in large-scale acquisitions. A source close to Shell adds:

“Shell will be in a strong position to deliver a transformative renewable energy deal in 2023 and beyond.”

An energy transition synonymous with competition

The energy transition is at the heart of the various strategies implemented by the energy sector industries. Shell, like all other companies, intends to accelerate its energy transition. Thus, strong competition is expected for the acquisition of assets. As a result, the cost of the latter should rise.

In addition, Shell is lagging behind its European rivals. In recent years, the company has remained more than cautious about renewable assets.

In fact, prior to the Sprng acquisition, Shell had only 1.1 GW of renewable energy in operation and 4.6 GW under construction. For comparison, by mid-2022, TotalEnergies had more than 9.5 GW of generating capacity (in operation or under construction). BP had 6.4 GW.

According to some sources, Shell’s caution is due to the many internal criteria of the group. Thus, no major company in the sector has met these acquisition criteria.

However, Shell has considered one option: RWE. The market capitalization of the German company is 28 billion euros. However, such an operation is very unlikely. In fact, in addition to renewable energies, RWE is active in the coal and nuclear sectors. Shell would not be interested in these areas.

What strategy for Wael Sawan?

Wael Sawan is expected to present his strategy, focusing on renewable energy, in the middle of next year. A source close to the company says:

“Wael has decided on the current strategy with the board of directors, but if he thinks there is a need for change when he arrives, it will happen quickly.”

The group is still expected to rely on oil and gas production, although Shell’s oil production is expected to decline from its record high in 2019. In addition to oil, it is highly unlikely that W. Sawan will desert the natural gas and LNG business. Especially since, in the context of the energy crisis, demand for gas and LNG is expected to remain high in the years to come.

At the same time, Shell is increasingly allocating resources to renewable energy. One source states:

“There’s a lot of internal activity to build a renewable energy portfolio around the world.”

The company’s main focus is on research and development of new resources.

Pedro Azagra leaves his role as CEO of Avangrid to become CEO of Iberdrola, while Jose Antonio Miranda and Kimberly Harriman succeed him as CEO and Deputy CEO respectively of the American subsidiary.
The US investment fund Ares Management enters Plenitude's capital by acquiring a 20% stake from Eni, valuing the Italian company at 10 billion euros and reinforcing its integrated energy strategy.
ENGIE secures a contract to reduce Airbus' industrial emissions in France, Germany, and Spain, targeting an 85% decrease by 2030 through various local energy infrastructures.
Alain Rhéaume, Chairman of Boralex’s Board of Directors for eight years, will leave his position by December, following the appointment of his successor by the governance committee of the Canadian energy group.
Norwegian group Statkraft plans an annual cost reduction of NOK2.9bn ($292 million) by 2027, citing possible job cuts amid rising financial burdens and volatility in the European energy market.
EDF merges EDF Renouvelables and its International Division into EDF power solutions, led by Béatrice Buffon, to optimise its global 31 GW low-carbon energy portfolio and strengthen its international positioning.
TotalEnergies announces a strategic partnership with Mistral AI to establish a dedicated innovation laboratory integrating artificial intelligence tools aimed at enhancing industrial efficiency, research, and customer relations.
The Energy Transitions Commission warns of economic risks tied to growing protectionism around clean technologies, while calling for global consensus on carbon pricing.
Baker Hughes has reached an agreement to sell its precision sensor product line to Crane Company for $1.15bn, thereby refocusing its operations on core competencies in industrial and energy technologies.
American conglomerate American Electric Power sold 19.9% of two transmission subsidiaries to KKR and PSP Investments, raising $2.82bn to support its five-year $54bn investment plan.
The new mapping by Startup Nation Central identifies 165 active companies in Israel’s energy technologies, amid strong private funding and growing global market interest.
The new CEO of EDF, Bernard Fontana, aims to achieve €1 billion in operational cost savings for the French energy giant by 2030, prioritizing industrial contracts and the national nuclear sector.
CMS Energy Corporation has announced a cash tender offer for debt securities totalling $125 million, issued by Consumers Energy. The offer expires on July 3, 2025, with priority given to bonds submitted before June 17, 2025.
Vermilion Energy is exiting the U.S. market permanently by selling its assets for C$120mn ($87.88mn), refocusing its operations on Canada and Europe while reducing its debt and investment budget.
In 2024, Italian energy giant Eni paid approximately €8.4 billion to various global governments. These payments, primarily concentrated in Africa and Asia, reflect its commitments in the international energy sector.
The International Energy Agency projects a record-high global energy investment in 2025, driven by electricity and low-carbon technologies despite geopolitical and economic uncertainty.
The Czech regulatory authority launches an investigation into suspected collusion involving several major actors in the awarding of a thermal power plant, putting transparency of a strategic transaction for the energy sector at stake.
The Democratic Republic of Congo is set to replace its temporary ban on cobalt hydroxide exports with quotas, aiming to balance global demand, secure revenue, and stabilize market fluctuations.
European Energy secured EUR 145mn in financing from SEB and Swedbank to support wind, solar, and storage assets in Lithuania, reinforcing its regional expansion strategy.
Greenvolt Group finalised the sale of 28 solar and wind projects to Transiziona, valued at €195mn, bringing total asset sales to €530mn in 2025 as part of its pan-European strategy.