Shell has ended investment in new offshore wind projects as part of a strategic review of its Shell Energy business, redirecting capital toward higher-return opportunities.
The decision, confirmed on 5 December following Reuters reporting, prioritises value extraction from Shell’s existing 3.4 GW renewables portfolio, including operational assets like Hollandse Kust West VI in the Netherlands. New farm development is off the table, though the company remains open to offtake deals or select equity stakes where economics align.
Shell Energy will split into two units – Shell Power for generation assets, Shell Energy for B2B retail, trading and customer solutions. The restructuring aims to sharpen accountability while maintaining close coordination between units.
A Shell spokesperson emphasised selective focus on batteries and flexible gas-fired plants to manage renewables intermittency in key markets. “Deep power trading and B2B sales expertise, paired with targeted storage and gas flexibility, create more value with lower emissions,” they said.
The shift coincides with Shell forming a UK North Sea joint venture with Equinor, billed as the region’s largest independent oil and gas producer. Equinor retains its UK wind assets (Sheringham Shoal, Dudgeon, Hywind Scotland, Dogger Bank), while Shell keeps stakes in floating projects MarramWind and CampionWind.
Shell’s retreat follows exits from several early-stage wind developments over the past year. The company will honour commitments on projects under construction but signals a broader pivot away from capital-intensive offshore expansion amid volatile returns and policy uncertainty.
The move reflects mounting pressure on Big Oil’s renewables pivot, as supermajors recalibrate toward oil & gas cashflow and “adjacent” low-carbon plays like hydrogen or CCUS that leverage existing skills.
