Shell is stepping back from new offshore wind investments and is splitting its power division following a review of the business launched in 2023, aimed at reducing costs.

A Shell spokesperson told reNEWS: “We will be focusing on maximising the value of our existing renewable generation platforms.

“While we will not lead new offshore wind developments, we remain interested in offtakes where commercial terms are acceptable and are cautiously open to equity positions, if there is a compelling investment case.”

CEO Wael Sawan has previously announced he intends for the oil and gas producer to focus on activities with the highest returns, which, in many cases, has meant reducing spending on low-carbon and renewable businesses and increasing the focus on oil, gas and biofuels.

Earlier today, Shell and Equinor revealed plans to set up a 50:50 UK-based joint venture pooling UK oil and gas assets and activities.

Both companies will retain ownership of their respective offshore wind portfolios.

The latest move is intended to enhance alignment between Shell’s power generation, trading and customer-focused activities to “better position” Shell for success.

Going forward, the company will run two connected businesses that will work closely together, Shell Power (power generation assets) and Shell Energy (B2B retail, customer solutions, marketing and trading).

A Shell spokesperson said: “We believe that selective investments in renewable power generation and storage systems, combined with our deep power trading and B2B sales expertise, will enable us to create more value with less emissions.

“In selected markets, we see increasing value in using batteries and flexible gas-fired power plants to manage intermittency and help us to meet our customers’ needs as renewables play increasing roles in power markets.”

Shell has around 3.4GW of renewable capacity in operation around the world.