Royal Dutch Shell Plc (RDSa.L) announced Tuesday that it does not plan to make any more large investments in wind or solar energy, according to a Reuters report.
The company also said it doesn’t expect hydrogen to play a significant role in energy supply anytime soon.
Linda Cook, head of Shell’s gas and power unit told reporters at a press conference on Tuesday that those investment opportunities "continue to struggle to compete with the other investment opportunities we have in our portfolio."
According to Reuters analysis, the company invested $1.25 billion in green energy from 1999-2006, including the development of 550 megawatts (MW) of wind power capacity.
Shell will limit its involvement in renewable energy to the development of biofuels. In September the company announced six new research agreements designed to complement Shell’s own biofuels development.
The steep drop in oil prices has undoubtedly taken some of the pressure off the company to develop alternative energy sources.
It is yet to be seen whether the company will stop its advertising, which portrays the company as a leader in developing clean energy. Those advertisements have already been labeled by some as disingenuous, considering that the company spent less than 1% of its investments on renewables.
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