KUALA LUMPUR, Malaysia (July 6): Shell Malaysia’s chairman, Ivan Tan, stated that the company plans to enter the renewable energy business in the future. “Shell generally eased into that market with that business model, and we have firms in the United States and Singapore who are already doing large-scale solar power generation and have done so.” “I guess for Shell Malaysia, we’ll continue to look into opportunities there (in renewable energy) in the future,” Tan said at a virtual briefing following Shell Malaysia’s launch of “The Tree, The Sky, The Sun: A Pathway Towards Malaysia’s Carbon-Neutral Future,” without providing a specific timeline.
Shell Malaysia expects that the book will add to the national discourse regarding the country’s energy transformation, which is in line with Shell’s worldwide objective to become a net-zero emission energy business by 2050, as embodied in its Powering Progress strategy.
Renewable energy sources, according to Tan, will dominate a future energy system that is heavily electrified. As a result, he said, robust coordination between the government, corporations, and society would be critical if Malaysia’s energy system is to become carbon-neutral by 2065. Despite significant economic development throughout this era, gains in energy efficiency result in a slight increase in the country’s final energy demand. Any residual emissions from the energy system are absorbed by nature or technology; for example, reforestation of an additional 5.8% of Malaysia’s land mass could trap up to 29 million tonnes of CO2 per year, essentially pushing Malaysia’s carbon-neutral date forward by 15 years to 2065. Finally, how aggressively these levers outlined are pushed in directing the economy towards a more sustainable post-pandemic recovery will determine when Malaysia becomes carbon-neutral. Other options exist and are dependent on social and policy preferences, but a substantial transformation in how society produces and uses energy is essential to limit global warming and manage climate change dangers, according to Tan.
In a May analysis, the International Energy Agency (IEA) stated that no new oil and gas (O&G) investment will be required to achieve net-zero emissions by 2050.
“We expect natural gas to decrease, and in time continue to come down, if we do not spend further in O&G in Asean and Southeast Asia,” Tan responded.
“In our situation, from 2025 onwards, there will be no frontier development, and we’ve already stated that oil prices will decrease by 1% to 2% every year moving forward,” he continued./n
