Oil and gas giant Shell plans to sell its household energy supply businesses in the UK, Germany and the Netherlands, the company announced in a press release on Tuesday.
After a five-month review of its home energy businesses across Europe, beginning in January, the UK-based energy giant confirmed that “a sales process is already underway, with the intent to reach an agreement with a potential buyer in the coming months”.
“Nothing will change for our customers during the sales process,” said Shell in the press release. “We are committed to supporting both customers and staff and protecting customer interests during this period, and to ensuring a seamless transfer to a buyer capable of delivering on its obligations, including our intent to maximise employment.”
It added: “Neither our B2B wholesale and SME customer supply businesses under the Shell Energy brand, or our home energy retail businesses outside Europe, are in scope of this potential divestment.”
The move comes two months after Shell split up its global renewable power unit as part of a company-wide shakeup by new CEO Wael Sawan. Renewables operations were brought under regional divisions of Shell Energy – the company’s power unit originally known as First Utility until it was purchased by Shell in 2018.
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Oil and gas giants, including Shell and rivals such as BP, have signalled a renewed focus on fossil fuels business after the industry saw record profits last year following the energy crisis triggered by Russia’s invasion of Ukraine.
This is despite warnings in the latest report from the Intergovernmental Panel on Climate Change and from the International Renewable Energy Agency that continued investment in oil and gas projects will push global warming far above the 1.5°C limit set out in the Paris Agreement.