New CEO shuffles up Shell's Global Renewable Power Unit

The newly appointed chief executive officer of Shell Plc, Wael Sawan, is dividing the firm's global renewable energy business into two separate businesses to better serve the company's growth strategies. 

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During his short time as CEO, Sawan has already reshaped his top management team in January - only a few weeks after assuming responsibility - by combining natural gas and oil operations as well as merging renewable energy with refining and marketing in an effort to streamline the business and boost profitability. Shell Energy, the company's power division, has recently changed its structure in a way that embeds operations such as wind and solar within regional divisions within the company as a whole.

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Similarly to its closest peer, BP Plc, Shell has signaled that it will be refocusing on its oil and gas business, which delivered record profits last year when Russia's invasion of Ukraine drove up the price of energy. The major oil companies have recently shifted their focus from focusing on long-term net-zero emissions to short-term energy security, after years of focusing on messaging highlighting climate plans. However, long-term net-zero emissions still remain their ultimate objective. 

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Apparently, Shell plans to eliminate Thomas Brostrom's global role as executive vice president for renewable generation, which he held previously when he worked for Danish renewable power giant Orsted A/S. This move is based on an internal document seen by Bloomberg News. It is now the responsibility of the regional heads of Shell Energy to supervise the production of energy from renewable sources under the direction of Executive Vice President Steve Hill, according to a document that has been circulated.

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Anna Mascolo has also been appointed to the position of executive vice president for low-carbon products and sectors under restructuring, in order to oversee a variety of businesses, including carbon capture and biofuels, as well as nature-based solutions.

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Both Hill and Mascolo report to Shell's executive committee member Huibert Vigeveno, who runs Shell's downstream and renewables division and is also a member of Shell's executive committee.  

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It was confirmed by a Shell spokesman that the changes had been made, and he added that combining downstream and renewables into a single directorate strengthens Shell's businesses by bringing together all the components of low- and zero-carbon energy into one division. The company has revealed that Brostrom will remain with the company as senior vice president for Shell Energy in Europe and Asia, overseeing the company's offshore wind operations worldwide.  

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By refocusing Sawan's business, Shell will continue to grow its natural gas business in the face of a world where natural gas is in great demand due to the lack of supplies. After years of increasing investment in the company's low-carbon and renewable energy business, spending on this unit is expected to remain stable in spite of the company's steady growth in investment.