British multinational oil and gas giant Shell plans to halt the operations of 1,000 retail gas stations in the US through 2025. This strategy is apparently part of its plans to focus on expanding its electric vehicle charging network amid the growing shift to electric mobility.
Shell to deploy 200K charging points by 2030
Shell indicated in its latest Energy Transition Strategy report that it plans to subsequently close 500 retail gas stations every year from 2024 to 2025.
The move will enable the company to devote its efforts and resources to expanding its public electric vehicle charging network. According to the report, Shell aims to deploy 200,000 charging points by the end of the decade, a notable increase from the company’s current operating capacity of approximately 54,000.
“In total, we plan to divest around 500 Shell-owned sites (including joint ventures) a year in 2024 and 2025. We are growing our premium lubricants portfolio to supply key energy transition sectors such as transformer oils used for offshore wind parks, and cooling fluids to support the development of electric vehicle car batteries.”
Shell
Focus on public charging network
England-based Shell also announced plans to focus more on public electric vehicle charging stations instead of home charging technologies, citing the competitive advantage it has in terms of locations and convenience retail offering.
“We are focusing on public charging, rather than home charging, because we believe it will be needed most by our customers. We have a major competitive advantage in terms of locations, as our global network of service stations is one of the largest in the world.”
Shell
In addition, Shell also noted that its convenience retail offering enables it to deliver convenience services to customers while they wait for their car to charge.
“We have other competitive advantages, such as our convenience retail offering which allows us to offer our customers coffee, food and other convenience items as they charge their cars. As we grow our business offering charging for electric vehicles, we expect an internal rate of return of 12 percent or higher.”
Shell
Shells’ EV charging network
Shell reportedly plans to focus its electric vehicle charging initiatives in China and Europe, where the market is “more developed.” In addition, these markets currently have a high demand for more public charging stations.
As of now, its electric vehicle chargers are available at Shell filling stations, on-street locations, “mobility hubs,” and other sites like supermarkets.
In the US, it completed its takeover of Volta in 2023. This acquisition enabled Shell to secure one of the most extensive charging networks in the country. Its Recharge EV charging map indicates that Shell currently has more than 3,700 charging stations in the US, offering multiple charging plugs.
In contrast, Tesla operates approximately 6,000 charging stations with more than 15,000 DC fast-charging plugs and several thousands of Level 2 chargers in the US.
