Renewables and Energy Solutions
Renewables and Energy Solutions (R&ES) includes renewable power generation, the marketing and trading of power and pipeline gas, as well as carbon credits, and digitally enabled customer solutions. R&ES also includes the production and marketing of hydrogen, development of commercial carbon capture and storage (CCS) hubs, investment in nature-based projects that avoid or reduce carbon emissions (NBS), and Shell Ventures, which invests in companies that work to accelerate the energy and mobility transformation.
($ billion) (1.1) 2021: (1.5)
($ billion) 1.7 2021: (0.2)
($ billion) (6.4) 2021: 0.5
(terawatt hours) [A] 243 2021: 247
(terawatt hours) [B] 843 2021: 899
(gigawatt) [C] 6.4 2021: 3.0
- [A]Physical power sales to third parties; excluding financial trades and physical trade with brokers, investors, financial institutions, trading platforms, and wholesale traders.
- [B]Physical natural gas sales to third parties; excluding financial trades and physical trade with brokers, investors, financial institutions, trading platforms, and wholesale traders. Excluding sales of natural gas by other segments and LNG sales.
- [C]Renewable power generation capacity (Shell Interest) in operation, under construction and/or committed for sale.
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$ million, except where indicated |
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|---|---|---|---|---|---|---|---|
|
2022 |
2021 |
2020 |
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Segment earnings/(loss) |
(1,059) |
(1,514) |
(479) |
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Including: |
|
|
|
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Revenue (including inter-segment sales) |
59,981 |
27,090 |
13,979 |
||||
Share of profit of joint ventures and associates |
(7) |
(27) |
(50) |
||||
Interest and other income |
57 |
200 |
(197) |
||||
Operating expenses [B] |
3,590 |
2,745 |
1,716 |
||||
Underlying operating expenses [B] |
3,583 |
2,737 |
1,711 |
||||
Depreciation, depletion and amortisation |
777 |
326 |
424 |
||||
Taxation charge/(credit) |
(303) |
(342) |
(61) |
||||
Identified Items [B] |
(2,805) |
(1,272) |
(277) |
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Adjusted Earnings [B] |
1,745 |
(243) |
(202) |
||||
Adjusted EBITDA [B] |
2,459 |
(21) |
25 |
||||
Capital expenditure |
2,609 |
2,069 |
363 |
||||
Cash capital expenditure [B] |
3,469 |
2,359 |
928 |
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External power sales (terawatt hours) |
243 |
247 |
252 |
||||
Sales of pipeline gas to end-use customers (terawatt hours) |
843 |
899 |
882 |
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Business conditions
For the business conditions relevant to Renewables and Energy Solutions, see “Market overview”.
External power sales
In 2022 our external power sales were 243 terawatt hours (TWh), compared with 247 TWh in 2021. The difference was mainly a result of higher volume sales during a Texas winter storm in 2021 and mild weather conditions in 2022. This was partly offset by business growth in the Americas and Europe.
Sales of pipeline gas to end-use customers
In 2022, our sales of pipeline gas to end-use consumers were 843 TWh, compared with 899 TWh in 2021. This difference was also mainly a result of high demand during the Texas winter storm in 2021, and more sales to trading intermediaries versus end-user counterparties.