Royal Dutch Shell plc and General Motors (GM) are collaborating to expand green energy options in Texas and beyond.
Shell’s MP2 Energy LLC unit is partnering with the auto giant on “comprehensive energy solutions programs” that could include fixed-rate home energy plans using 100% renewable energy resources.
The program, already for some GM customers in Texas, is being expanded this summer for all GM-branded electric vehicles (EV). The EV owners could select home energy plans with the option for free overnight vehicle charging. The partners also want to offer GM suppliers access to a suite of renewable energy products.
“Shell is working across many sectors to help address greenhouse gas emissions and to serve as a partner for change,” said Shell’s Glenn Wright, vice president of Renewables and Energy Solutions. “We see opportunities amidst the challenges of the energy transition, and we are excited to work with GM to provide options for consumers and businesses focused on their emissions impact.”
Shell has set a target to become a net-zero emissions company by 2050. The goal is to reduce direct, indirect and customer emissions, defined by Scope 1, 2 and 3 criteria. It also is lining up partners for the MP2 Energy unit.
For example, Wells Fargo last year structured renewable energy agreements with Shell Energy North America (US) LP and MP2 to secure 150,000 MWh/year. The energy is to provide 100% of the consumption of about 1,200 Wells Fargo properties in California and the Mid-Atlantic states.
GM in January set a target by 2040 to be carbon-neutral for all global products and operations. The Detroit automaker envisions an all-electric future, with aspirations to eliminate tailpipe emissions from new light-duty vehicles by 2035.
“Addressing climate change requires incredible scale,” said GM’s Kristen Siemen, chief sustainability officer. “At GM, we’re committed to helping bring everybody in on a more sustainable future.”
The deal is “unlikely to be a needle mover” right away but it’s an “intriguing partnership nonetheless,” said Tudor, Pickering, Holt & Co. (TPH).
“We find it increasingly interesting how the energy transition continues to form new partnerships across a broad spectrum of industries,” analysts said in a note Thursday.
According to the Texas Department of Motor Vehicles “there were 36,400 registered EVs in Texas in 2020, up 25% year/year, out of a total 24 million registered vehicles,” analysts noted. TPH’s team said that for Shell, the transaction aligns with the shift “into various areas of the energy transition, alongside continuing to harvest free cash from the legacy oil and gas business.”
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