Shell has unveiled its Energy Transition Strategy report, outlining plans to sell 500 company-owned retail sites annually in 2024 and 2025.
The divestiture forms part of Shell’s strategy to modernize its retail network with low-carbon fuels and electric vehicle (EV) charging stations in select markets like China, Europe, and the United States. Simultaneously, Shell aims to scale down its presence in other markets.
Highlighting the growing demand for EV charging solutions, particularly in China and Europe, Shell aims to bolster its EV charging business. The company plans to expand its current 54,000 public charge points to approximately 200,000 by 2030.
In its report, Shell emphasizes a preference for public charging infrastructure over home charging, citing it as a vital customer need. Leveraging its extensive global network of service stations, Shell views this as a significant competitive advantage.
“We have other competitive advantages, such as our convenience retail offering, which allows us to offer our customers coffee, food, and other convenience items as they charge their cars,” the report stated. “As we grow our business offering charging for electric vehicles, we expect an internal rate of return of 12% or higher.”
The decision to divest 1,000 stores by 2026 coincides with Shell’s expansion efforts in the United States. Recently, Shell acquired Brewer Oil Company’s retail division, adding 45 fuel and convenience store sites in New Mexico.
Additionally, Shell reported investing $2.3 billion in producing non-energy products last year, including its convenience store network.
