Oil and gas major Shell has launched the Shell Energy brand in Brazil and has committed to investing R$3 billion (US$570 million) in renewables in the country by the end of 2025.
With Shell’s division focused on decarbonisation and renewables, Shell Energy will provide clean electricity from solar and wind power plants as well as low-carbon energy from thermal-based gas. It will also offer environmental products such as Renewable Energy Certificates and carbon offsets.
Shell Energy Brazil currently has six solar projects totalling 2GW and its head of renewable development for Latin America, Gabriela Oliveira, was cited by Reuters as saying it anticipates 5GW of solar within its Brazilian portfolio by the end of this year.
“The launch of the brand in Brazil reflects the effort towards decarbonization and also the opportunities opened up by the New Gas Law and by the entry of consumers into the free electricity market” said Guilherme Perdigão, director of renewables and energy solutions at Shell Brazil and Shell Energy.
Brazil is increasingly seen as an attractive market for solar by analysts and investors given the country’s energy needs, a lack of supply, favourable legislation and climate.
In February, Shell committed to spending between US$2 billion and US$3 billion on renewables and energy solutions annually to help it attain net zero status by 2050, although it remains heavily reliant on fossil fuels. Its stated investments in oil exploration would remain effectively three-times that earmarked for renewables, in a move called “delusional” by environmental groups.