Shell splits renewables business in CEO efficiency drive

By Ron Bousso

LONDON (Reuters) -Shell is splitting up its renewables and low-carbon division as part of CEO Wael Sawan's shake-up to boost the energy giant's returns.

The changes come as Sawan, who took office at the start of the year, has signalled in recent weeks that Shell is considering ditching oil reduction output targets as part of its energy transition plans.

Shell is eliminating the global role of executive vice president for renewable generation held by Thomas Brostrom, who joined the company in 2021 from Danish renewables giant Orsted, a company spokesperson said.

Wind and solar power businesses will now fall under the regional heads of Shell Energy, reporting to Executive Vice President Steve Hill.

At the same time, Shell named Anna Mascolo as executive vice president for low carbon products and sectors, including biofuels, carbon capture and nature-based solutions.

Hill and Mascolo report to Huibert Vigeveno, who heads the downstream and renewables division.

The changes were first reported by Bloomberg.

The changes to the renewables business come two months after Sawan announced plans to combine the oil and gas production and liquefied natural gas (LNG) divisions and place the renewables business in the downstream division.

Sawan has vowed to improve the company's performance as it seeks to reduce greenhouse gas emissions in the coming decades. Shell reported a record profit of $40 billion last year.

The spokesperson said combining downstream and renewables in a single directorate strengthens the businesses by bringing together all the elements of low- and zero-carbon energy.

Brostrom will remain at the company as senior vice president for Shell Energy in Europe and Asia, overseeing all offshore wind globally, he said.

(Reporting by Ron BoussoEditing by David Goodman and Josie Kao)