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Shell (RDS.A) Partners With IONITY to Rev Up EV Business
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In a bid to bolster its electric-vehicle (EV) charging business, European oil giant Royal Dutch Shell plc is set to collaborate with EV-focused charging operator IONITY.
Deal Highlights
IONITY— one of the most significant developments in the EV infrastructure — is a joint venture (JV) formed by world’s major carmakers namely BMW Group, Daimler AG, Ford Motor Company, and Volkswagen Group with Audi and Porsche. The Munich-based JV, set up only a few weeks ago, aims at designing around 400 high-power charging stations across Europe by 2020.
Per the deal, Shell is likely to launch around 80 charging networks across Europe by 2019. The charging stations will be deployed in Belgium, Britain, France, the Netherlands, Austria, the Czech Republic, Hungary, Poland, Slovakia and Slovenia. The charging points to be installed by the partnership are likely to top up the electric vehicles in around 5-8 minutes.
With this deal, Shell wants to cash in on the wide acceptance of the electric cars and thereby increase customer base and revenues. Shell believes that the deal will provide customers range of refueling choices in future and bring diversification to its asset portfolio.
Shell’s Vision and Initiatives
By 2025, Shell aims to attain 20% of its global fuel station sales from electric vehicles recharging and alternative and low carbon fuels like biofuels, battery recharging and liquefied natural gas. The company will invest approximately $1 billion per year till 2020 in its New Energies division as it intends to shift its focus on cleaner and renewable energy sources.
Last month, Shell clinched its first EV deal by acquiring NewMotion which is Europe's one of the largest EV charging networks.
Shell has also launched vehicle recharging stations as pilot projects in California, Britain and the Netherlands. It also plans to build hydrogen fuel stations in Germany. The Anglo Dutch giant is changing its marketing business according to the change in demand pattern, which focuses more on alternative fuel.
Electric Cars Are the Future
A host of factors such as pollution issues, government sops, cost advantages, technical superiority and increasing adulation from both automakers and customers have turned the fortune in favor of EVs. Stricter fuel-efficiency standards are being imposed by countries across the world which seems to be in favor of EVs. European nations such as France and UK have already specified future plans of completely banning diesel and gasoline cars sale. China, the largest car market in the world, has also decided to totally switch to EVs at an unspecified date, has sent a clarion call to automakers as well as the energy industry.
The Road Ahead
With the transition to electric vehicles gaining momentum, the trend could eat into global oil demand and upend the energy sector in the coming years. It is estimated that electric vehicles will cause the oil demand to reduce by 3.5 million barrels a day by 2025. Per Bloomberg reports, one-third of automobiles in the world will be electric by 2040, a shift that will cut demand for oil production by about 8 million barrels a day.
Therefore it makes sense for the energy companies to re-orient and re-strategize to adapt to the changing times and invest in alternative fuels. Many oil majors like TOTAL S.A. , Chevron Corporation (CVX - Free Report) , Shell and ExxonMobil Corporation (XOM - Free Report) have already started making efforts to de-carbonize the energy system with gradual shift into alternative fuels. In September, TOTAL signed a deal with NewMotion to provide customers access to electric vehicle charging network. BP plc is also in talks with electric vehicle makers to enter into partnership agreements for providing charging stations at its retail sites.
Zacks Rank
Headquartered in Netherlands, Shell is one of the largest integrated energy companies engaged in production, refining, distribution and marketing of oil and natural gas. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Shell have rallied 15% year to date compared with 3% growth of its industry.
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It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Shell (RDS.A) Partners With IONITY to Rev Up EV Business
In a bid to bolster its electric-vehicle (EV) charging business, European oil giant Royal Dutch Shell plc is set to collaborate with EV-focused charging operator IONITY.
Deal Highlights
IONITY— one of the most significant developments in the EV infrastructure — is a joint venture (JV) formed by world’s major carmakers namely BMW Group, Daimler AG, Ford Motor Company, and Volkswagen Group with Audi and Porsche. The Munich-based JV, set up only a few weeks ago, aims at designing around 400 high-power charging stations across Europe by 2020.
Per the deal, Shell is likely to launch around 80 charging networks across Europe by 2019. The charging stations will be deployed in Belgium, Britain, France, the Netherlands, Austria, the Czech Republic, Hungary, Poland, Slovakia and Slovenia. The charging points to be installed by the partnership are likely to top up the electric vehicles in around 5-8 minutes.
With this deal, Shell wants to cash in on the wide acceptance of the electric cars and thereby increase customer base and revenues. Shell believes that the deal will provide customers range of refueling choices in future and bring diversification to its asset portfolio.
Shell’s Vision and Initiatives
By 2025, Shell aims to attain 20% of its global fuel station sales from electric vehicles recharging and alternative and low carbon fuels like biofuels, battery recharging and liquefied natural gas. The company will invest approximately $1 billion per year till 2020 in its New Energies division as it intends to shift its focus on cleaner and renewable energy sources.
Last month, Shell clinched its first EV deal by acquiring NewMotion which is Europe's one of the largest EV charging networks.
Shell has also launched vehicle recharging stations as pilot projects in California, Britain and the Netherlands. It also plans to build hydrogen fuel stations in Germany. The Anglo Dutch giant is changing its marketing business according to the change in demand pattern, which focuses more on alternative fuel.
Electric Cars Are the Future
A host of factors such as pollution issues, government sops, cost advantages, technical superiority and increasing adulation from both automakers and customers have turned the fortune in favor of EVs. Stricter fuel-efficiency standards are being imposed by countries across the world which seems to be in favor of EVs. European nations such as France and UK have already specified future plans of completely banning diesel and gasoline cars sale. China, the largest car market in the world, has also decided to totally switch to EVs at an unspecified date, has sent a clarion call to automakers as well as the energy industry.
The Road Ahead
With the transition to electric vehicles gaining momentum, the trend could eat into global oil demand and upend the energy sector in the coming years. It is estimated that electric vehicles will cause the oil demand to reduce by 3.5 million barrels a day by 2025. Per Bloomberg reports, one-third of automobiles in the world will be electric by 2040, a shift that will cut demand for oil production by about 8 million barrels a day.
Therefore it makes sense for the energy companies to re-orient and re-strategize to adapt to the changing times and invest in alternative fuels. Many oil majors like TOTAL S.A. , Chevron Corporation (CVX - Free Report) , Shell and ExxonMobil Corporation (XOM - Free Report) have already started making efforts to de-carbonize the energy system with gradual shift into alternative fuels. In September, TOTAL signed a deal with NewMotion to provide customers access to electric vehicle charging network. BP plc is also in talks with electric vehicle makers to enter into partnership agreements for providing charging stations at its retail sites.
Zacks Rank
Headquartered in Netherlands, Shell is one of the largest integrated energy companies engaged in production, refining, distribution and marketing of oil and natural gas. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Shell have rallied 15% year to date compared with 3% growth of its industry.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>