Market Chatter: Royal Dutch Shell Mulls Green Energy Acquisitions

Shutterstock photo

Royal Dutch Shell ( RDS.A ) American depository shares were higher 4% on Wednesday as CEO Ben van Beurden told Reuters the company is considering acquisitions in the green energy sector to meet shareholder demands for a strategy beyond fossil fuels.

"I am convinced that in this space we will play an active role, a leading role and we will plan acquisitions in it," Beurden said. "Of course we do believe in renewables but probably more in building the utilities and integrating them into our existing operations."

The oil giant owns 500 megawatts of onshore wind power capacity in the U.S. and also has a biofuels business in Brazil that produces ethanol from sugar that is mixed with petrol and diesel to reduce carbon dioxide emissions.

Separately, Bloomberg reported that Norway expects Shell to move forward with a shelved project to boost recovery of natural gas at the Ormen Lange field. It cited Bente Nyland, the head of the Norwegian Petroleum Directorate as saying it will start pushing Shell for progress from next year. Nyland said "there are a lot of resources at Ormen and we have to get them out."

The project was postponed in 2014 and Norway said it will start to be "urgent" to proceed in 2017 and 2018.

The report meanwhile cited Shell spokeswoman Kitty Eide as saying that it is too early to conclude if a project to increase recovery at Ormen Lange will materialize.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , ETFs
Referenced Symbols: RDS.A , RDS.B , RDS/B

More from MT Newswires


MT Newswires

MT Newswires

Market News, Commodities
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by