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Investing in net zero

In 2022, we invested $8.2 billion in low-carbon energy and non-energy products, around a third of our total cash capital expenditure [A] of $25 billion. Of that, we invested $4.3 billion in low-carbon energy solutions, an increase of 89% compared with the previous year. This includes capital spending on biofuels, hydrogen and charging for electric vehicles, as well as wind and solar power [B]. The remaining $3.9 billion was invested in non-energy products such as chemicals, lubricants and convenience retail, which do not produce emissions when they are used by our customers. Our investment in non-energy products decreased by 9% compared with 2021.

These investments advance a central part of our strategy which is to sell more products with low-carbon emissions to help both Shell and our customers meet their climate targets.

Two-thirds of our capital spending in 2022 was on maintaining supplies of the vital energy the world needs today. We invested $4.2 billion in liquefied natural gas (LNG) as well as gas and power marketing and trading, an increase of 17% compared with the previous year. We expect LNG will remain an important part of the energy mix for many years to come because of its role in reducing emissions from power generation and transport.

We also increased our investments in oil production and oil products by 30% to $12.5 billion. This includes investments of $8.1 billion in our Upstream business, helping maintain our assets and make up for the natural decline in oil and gas production. It also includes investments in refining and trading, as well as fuels marketing, which are important to maintain supplies of fuels for motorists, commercial road transport, aviation and industry.

[A] Please refer to the "Non-GAAP measures reconciliations" section of the Annual Report and Accounts 2022 for the definition of cash capital expenditure.
[B] The $4.3 billion investment does not include the acquisition of Nature Energy for around $2 billion, which closed at the beginning of 2023.

Investing through the energy transition

Total cash capital expenditure of $25 billion in 2022

Non-energy products [A]
$3.9 billion
Low-carbon energy solutions [B]
$4.3 billion
LNG, gas and power marketing and trading [C]
$4.2 billion
Oil, oil products and other [D]
$12.5 billion
  • [A]Products for which usage does not cause Scope 3, Category 11 emissions: Lubricants, Chemicals, Convenience Retailing, Agriculture & Forestry, Construction & Road.
  • [B]E-Mobility and Electric Vehicle Charging Services, Low-Carbon Fuels (Biofuels/HEFA), Renewable Power Generation (Solar/Wind), Environmental Solutions, Hydrogen, CCUS. We define low-carbon energy products as those that have an average carbon intensity that is lower than conventional hydrocarbon products, assessed on a lifecycle basis (including emissions from production, processing, distribution and end use).
  • [C]LNG Production & Trading, Gas & Power Trading, and Energy Marketing.
  • [D]Upstream segment, GTL, Refining & Trading, Marketing fuel and hydrocarbon sales, Shell Ventures, Corporate segment.

Read more about our outlook for 2023 and beyond in the Annual Report and Accounts 2022