Shell joins automakers in fast electric cars charging
1 December, 2017
Royal Dutch Shell, the world second-biggest oil company, said last Monday it has agreed with IONITY, a Munich-based venture between BMW Group, Daimler, Ford Motor and Volkswagen, to start charging stations for electric vehicle in 10 European nations. The agreement is built on Shell’s acquisition of Europe’s largest electric-vehicle charging provider NewMotion last month.
Shell and IONITY will initially have charging points at 80 of Shell’s biggest highway fuel stations, with an average of six posts in each. It will take five to eight minutes on average to charge an electric vehicle at these points, according to the Shell statement. The company opened its first rapid-charging point for electric cars at gasoline stations in the UK in October. Shell wants 20% of profit margins from fuel sold in its retail forecourts to come from vehicles that don’t burn diesel or gasoline by 2025, John Abbott, the top executive of its downstream business, said.
The Shell deals come as the oil industry goes through a critical phase in its history, with the dominance of gasoline and diesel challenged by the need for cleaner energy. Markets, including France, the UK and China are talking about phasing out the sale of fossil-fuel-powered cars in the coming decades, and major energy companies are looking to adapt.
Under Shell’s most aggressive projections, the company expects the global electric vehicle fleet to grow from about 1% of the entire auto fleet today to 10% by 2025, displacing oil demand equating to about 800,000 barrels per day.