Shell explores renewables in PHL
Posted on December 09, 2016
http://www.bworldonline.com/
THE local business of Anglo-Dutch company Royal Dutch Shell plc is setting its sights on renewable energy in line with a “global priority” to diversify into clean power sources, the Philippine country manager said.
“We’re very interested in trying to explore renewable opportunities in the Philippines,” he told reporters on the sidelines of the group’s yearend media event on Wednesday night.
Mr. Romero, who is also president of Pilipinas Shell Petroleum Corp., said the company was in the “scouting phase” for a possible project, which could happen earlier than the next three to five years.
“We’re prepared to use a combination of platforms depending on what may be a commercial viable opportunity,” he said.
He said the starting point for Shell in its foray into renewables would be solar, although could also explore various combinations, such as a hybrid of solar and gas or diesel. Hydropower would not be a top choice because it is location-dependent, he added.
“We’re open minded about the technology that we will be using,” he said, adding that solar power with battery storage and backed up by generation set is also an option.
Mr. Romero said Shell was considering whether to put up a holding company for the venture or place renewables in a separate entity.
“Just to demonstrate the seriousness of the company, we’ve even formed a new organization globally (called) ‘New Energies,’” he said.
He said it would be too early to set the target capacity in megawatts for the local renewables venture, adding the company is open to a partnership with other entities.
“Oil will continue to play an important role… But we owe it to our future generations to start working towards a path towards a lighter carbon environment,” he said.
Shell’s move towards renewables comes after it announced plans to put up a new entity that will house its investment in liquefied natural gas (LNG) in the country.
It previously said that the size of the new company would depend on market demand, which he said would also dictate the type of facility that will be built. As options, company officials cited an LNG floating storage and a regasification unit or an onshore facility.
On Thursday, shares in Pilipinas Shell traded higher by 0.15% to P67.75 each. The company went public on Nov. 3 at a price of P67 per share.
