How is Shell oriented towards emobility and Electric Vehicle business?

Most of people tend to think that Oil & Gas companies are completely out of the Electrification business and that they will soon disappear because of lack of petrol demand. Yet, over the last 5 years, O&G companies have heavily invested in Charging station, electric motor technology support and even in Batteries. This article takes the example of Shell to give some key example on how this petrol company is preparing an electric future.

First, let’s remind us that Shell has recently redefined itself as an “energy transition company” rather than the old “Oil & Gas company”. Of course, so far, Shell keeps most of its traditional business around petrol, but it is very clear that they are committed to adapt to the energy transition requirements (by choice or by social pressure).

Shell publicly supports renewable energy and targets becoming a net-zero emissions energy business by 2050. For this, they are investing US$ 5-6 billion per year into renewable energy and low carbon technologies.

Shell has recently made some interesting investments in Electric Vehicle business including charging infrastructure and distribution, battery swapping, collaboration with new EV car manufacturers, sponsorship of EV motorsport and EV fluid development.

Shell NewMotion charging station. photo credit: Dr Cecile Pera

Shell NewMotion charging network

Shell and EV Charging business

In 2017, Shell acquired First Utility, a UK-based electricity supplier but also NewMotion, one of the largest European electric vehicle charging companies. NewMotion is a well-settled company in EV charging business with a portfolio including home line chargers (3.7 kW, 22 kW), electric charging subscriptions (monthly contract), charging points and subscriptions for business (multiple socket connectors), as well as a charging App to ease roaming.

As of September 2021, NewMotion (Shell Group) is already offering more than 250,000 charging points over 35 countries allowing the “longest European EV road trip”.

“The NewMotion Shell EV Charging network allows EV drivers to travel the entire 5,000+ kilometers from North to South Europe in one go”

Shell and NewMotion have a particularly aggressive and efficient deployment strategy by partnering with key companies. This includes not only strategic car manufacturers (VOLVO, Renault, Ford…) but also large parking infrastructure such as QPark or IKEA.

Shell e-fluid with Kreisel Electric Battery Technology

NIO and Shell collaboration on Battery Swapping Charging

Shell and Battery / EV Technologies

As most of other Oil and Gas Companies, Shell has been developing lubricants and cooling fluids for EVs for many years. Even if the general public does not really pay attention to this, an electric vehicle still relies on crude-based products. Many components such as the e-motor, the battery, the inverter, the gearbox, the differential, etc. need lubricants or greases. The Electric Drive Unit imposes very specific requirements for the its lubrification. For example, some e-motors require a direct cooling of the e-motor windings. Products are designed specifically to match requirements on cooling, electrical insulation, friction control but also thermal stability, foam control or copper compatibility,… Each requirement leads to specific additives (meaning chemical products) and a final composition that significantly differs from an oil for a thermal engine.

Recently, Shell and Kreisel Electric have announced the common development of an e-fluid for battery immersion cooling. Kreisel Electric has designed a laser-welded battery technology that includes single cell fusing and controlled degassing with a specific battery thermal management. Thanks to specific lubrication and additive properties, Shell has developed a specialised non-conductive thermal management fluid enabling fast-charging. While not yet mainstream, immersion cooling is already used by OEMs such as Mercedes AMG or Koenigsegg for example).

Shell is not restricting its Battery/EV business to a single technology: Shell and NIO have recently announced a collaboration on Battery swapping. You may be surprised by this collaboration but you have to know that Shell already invested $31 million in 2018 in Ample, a technology company developing Swapping Battery charging technology. NIO and Shell will collaborate to develop a network of co-branded Battery Swapping Stations. This will include the Chinese market (plan for 100 stations by 2025) but the cooperation will start in Europe from 2022, notably based on existing NIO offering of Battery Swapping (available in Norway since early this year). The collaboration will also benefit from the integration of this swapping option within the NewMotion network.

Forze racing team with Shell sponsoring. Photo credit: Martijn Heemstra

Formula E team NISSAN e-dams with Shell sponsoring

Shell and Public image: Motorsport sponsoring

If you like Motorsport and in particular e-Motorsport, you may have noticed Shell sponsorship with EV. For example, do you know that Shell is an official sponsor of the Formula E team e.dams since 2018. This not only allows Shell to get its name associated to Electric Vehicles but also advertises for its e-fluids and EV charging capabilities.

Yet, Shell does not neglect the other “alternative propulsion” method and is also involved in Hydrogen, being a major sponsor of the Hydrogen racing team Forze developing a Fuel Cell vehicle to compete in the GT class. This allows Shell to position itself in the Hydrogen / Fuel cells business for future vehicles similarly as Total Energies who is currently developing the Hydrogen Fuel Cell LMPH2G to race at the 24h Le Mans in 2024 (FCEVs being EV using Batteries and eMotors).

Conclusion and discussion

I hope that this article has shown you that O&G companies are not so badly positioned in the Electrification business. Firstly, the world will not move away from crude-based components any time soon, notably because an EV heavily relies on crude-derived components (see OROVEL Battery Cards). Secondly, a large part of the funding for Renewable and Electric businesses is today coming from O&G companies because (1) they have the money for massive investments; (2) they are preparing their transition; (3) they have the experience of customer demand while refuelling/recharging; (4) they own or have long-term renting contracts for refuelling/recharging infrastructure on all main roads.

Beside vehicles, O&G companies often also have interests in electricity production. Shell is involved in Renewable Energy production including, for example, Solar Panels. Shell acquired in 2018 44% stake of Silicon Ranch, a US-based solar developer Silicon Ranch, in a deal valued at more than US $200 million. 

Not all Oil & Gas companies have the same strategy as Shell but most of them are busy positioning themselves in the Renewable Energy market, slowly moving away from an all-petrol business. The future will probably not see O&G companies disappearing, but changing face and stay around among big players of in the Energy market.