Shell has dropped plans to supply hydrogen to the light mobility market in a strategic shift that will see its hydrogen business prioritise heavy-duty mobility and industrial applications. In the light mobility sector, which includes passenger cars and vans, Shell will continue to invest in electric vehicle (EV) charging.

“As part of Shell’s drive to create more value with less emissions through a focus on performance, discipline and simplification, we are making some changes to our hydrogen business, refocusing it on the core areas of heavy transport and industry,” the company told Hydrogen Economist.

“Our global hydrogen portfolio remains a key part of our efforts to address the commercial and technical challenges in scaling our low-carbon solutions business, and we will be disciplined in only making investments with the highest chance of creating value and lowering emissions,” Shell added.

Shell’s strategy aligns with some other suppliers, including BP

The move away from light mobility hydrogen fuelling has been mooted for some time, with multiple refuelling points understood to have been shut down since 2022, although this is the first time Shell has articulated the change in strategy.

Shell’s strategy aligns with some other suppliers, including BP, which is investing heavily in EV charging for lighter vehicles but also sees a role for hydrogen in long-haul transport due to its longer driving range and faster refuelling time. However, other suppliers are pursuing the light mobility market. TotalEnergies recently opened hydrogen refuelling facilities in the Netherlands aimed at passenger cars, light vans, buses and trucks.

The overhaul of Shell’s hydrogen strategy forms part of a broader review of its low-carbon solutions business, placing greater emphasis on “core low-carbon business areas such as transport and industry”.

Headcount in the low-carbon business, including hydrogen, will be reduced by 200 in 2024, with a further 130 positions under review until the end of 2024. “Some of these roles will be integrated into other parts of Shell,” the company said. Total headcount in the low-carbon unit is at least 1,300, although this does not include renewable energy and other teams contributing to the low-carbon business.

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Author: Stuart Penson