Shell’s Transition to Renewable Energy

We continue to see impressive announcements that have come to light throughout 2021. This new one, announced by the Royal Dutch Shell Plc, is no exception.

Shell’s Transition to Renewable Energy

The Royal Dutch Shell Plc, commonly referred to as Shell, announced its procurement of a prominent US-based renewable energy company, Inspire Energy. This announcement comes as the world is beginning to see an onset of ramifications resulting from climate change, prompting more and more individuals to begin advocating for more sustainable goods and services. Consequently, companies such as Shell have begun expanding on their sustainability initiatives to meet this demand and sustain their clientele base.

A Gas Company Acquiring Renewable Energy?

Considering that fossil fuels carry a massive environmental footprint, some might be surprised that a giant gas company such as Shell would want to invest in renewable energy. In the past, initiatives such as this have led to a host of backlash as some of the general public remains wary of large corporations and greenwashing. Further, Shell’s notorious history of environmental damage, such as the oil spill in the Gulf of Mexico left the company with a negative public perception.

That said, Shell seems to be trying to better its public image by working to implement a fair number of sustainable initiatives, even having a rather comprehensive section on their website complete with a 2020 sustainability report. The website boasts a net-zero emissions target that they plan to reach by 2050, a pledge to install more electric vehicle chargers, expand the availability of hydrogen energy, achieve zero harm, minimize habitat degradation, and assure adequate working conditions throughout their supply chain. Having taken inspiration from the United Nations 17 Sustainable Development Goals, Shell seems to be rather dedicated to improving its public perception and taking a stance toward lowering its environmental footprint.

A Cleaner Future

Inspire Energy launched in 2014 with the intent to decarbonize the energy grid for the sake of curbing climate change. What started as an ambitious goal has since come to fruition as the company has thus far provided enough renewable energy sources to have avoided over 7.6 billion tons of carbon dioxide emissions. The company has also set aggressive goals based around their five truths -pillars-, our future is electric, a net-zero carbon future is possible, we learn together, everyone wins, and passion powers the world.

Inspire is unique in that it offers customers a membership plan with a flat monthly rate. The company even claims they are the first and only business to utilize this subscription-type approach in the renewable energy sector.

Members can sign up for Inspire's service and receive wind-powered renewable energy to their homes with an effortless transition. The company has so far powered homes in Washington D.C., Delaware, Illinois, Massachusetts, Maryland, New Jersey, Ohio, and Pennsylvania.

Due to the very recent announcement of this acquisition, the details of what plans Shell has for the company have not yet come to light. It is fair to assume Shell will utilize the community trust that Inspire Energy has garnered to leverage a larger adoption of alternative energy.

As a result of the company’s unique approach, Shell now has a competitive advantage that can potentially spiral into a bunch of other green energy projects for the company. This can aid in the eventual switch to renewable energy sources and the lowering of overall atmospheric emissions.

From a business perspective, the adoption of this renewable energy company is a rather good idea. And considering the gas sector has also seen an increase in investor pressure to cut their emissions substantially, this purchase has seemingly come at the perfect time for Shell.

Many analyses have even found renewable power to be an adequate option for the future of the United States. This means that the eventual phasing out of fossil fuels will occur, leaving many gas companies out of business if they don’t adapt and change their power source as soon as possible. This will lead to a slew of other companies looking to purchase similar sustainable initiatives and renewable energy alternatives to meet the growing consumer demand, resulting in an array of environmental benefits.

Whether or not Shell acquired Inspire for the sake of their sustainability goals and the betterment of the planet, or for the sake of diversifying their portfolio, the bottom line is that the continued growth of the renewable energy sector can only yield beneficial outcome for the earth and all that inhabits it.


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