. SUStainable energy from renewable resources Shell Renewables Our vision For over a century, Shell has been at the forefront of energy - serving the current energy needs of society and business, and keeping a constant on the future to see how those needs might evolve. And we fully intend to be a leading player in energy a hundred years from now. That is why we are actively involved in the development of renewable sources of energy. Shell Renewables aims to break new ground by establishing a significant, commercially viable business in this sector. We are building on proven and new technologies to deliver energy solutions that are cost-effective, efficient and reliable to customers, communities and other stakeholders. At the same time, the sound economic and commercial principles and practices that underpin our business will ensure that Shell Renewables goes from strength to strength in the coming years. We intend to create a significant business In this sector, making the most of the opportunities which this trend will bring.? Karen de Segundo CEO, Shell Renewables Making renewable energies pay their way We believe that renewables will be an increasingly important part of the energy mix, driven by concerns over the availability of resources, technology development, and changing social and political priorities. While fossil fuels are unlikely to become scarce over the next two decades, pressure is rising in developed countries for cleaner fuels, and there is a growing demand from developing markets for state-of?the-art technology for the coming decades. 2 *Our ideas are explained in detail in the publication "Energy Needs, Choices and Possibilities: Scenarios to 2050?. Shell has recently explored these trends developing two scenarios, ?Dynamics as Usual? and ?Spirit of the Coming Age?, in which we ask searching questions on how our energy systems could evolve.* All the evidence leads to the same conclusion renewables will play an important role in the future of global energy. Independent analysis confirms this view. Public opinion supports such a shift. Governments are actively encouraging it. Finance is being mobilised for renewable energy schemes in industrialised and developing countries. But renewable energy will only deliver the benefits it promises on one condition: it must become big enough to make a difference. We cannot expect government to subsidise renewable energy indefinitely. But it is unlikely to be taken up by a significant number of consumers until the cost becomes competitive with conventional energy SOUFCGS. For more information visit We have to make the renewable energy sector work commercially, as quickly as possible, to give it the long-term future it deserves. Shell Renewables is in business to meet this challenge. We are focusing on wind and solar energy, the fastest-growing renewable energy technologies. And we are working to expand markets, drive new technologies forward, lower costs, agree standards, and encourage trading. Renewables are growing faster than traditional energy the fastest growth in wind and solar -o?Dynamics as Usual? ?Spirit of the Coming AgeRenewables - - Renewables 7 0:5 col 2000-20 2000-40 2000-60 - 0:5 -20 - - Coal - Coal - Nuclear - Nuclear -40 2000-20 2000-40 .1 2000-60 Incremental Energy Supply by 20 Year PeriOds (millions of barrels per day oil equivalent) ?By 2050 renewables reach a third of the world primary energy and are supplying most incremental energy.? Renewables will become an important part of the energy mix of the future. We intend to create a significant business in this sector, making the most of the opportunities which this trend will bring.? Karen de Segundo CEO, Shell Renewables Making renewable energies pay their way We believe that renewables will be an increasingly important part of the energy mix, driven by concerns over the availability of resources, technology development, and changing social and political priorities. While fossil fuels are unlikely to become scarce over the next two decades, pressure is rising in developed countries for cleaner fuels, and there is a growing demand from developing markets for state-of?the-art technology for the coming decades. Shell has recently explored these trends developing two scenarios, ?Dynamics as Usual" and ?Spirit of the Coming Age?, in which we ask searching questions on how our energy systems could evolve.* All the evidence leads to the same conclusion renewables will play an important role in the future of global energy. Independent analysis confirms this view. Public opinion supports such a shift. Governments are actively encouraging it. Finance is being 2 *Our ideas are explained in detail in the publication ?Energy Needs, Choices and Possibilities: Scenarios to 2050 mobilised for renewable energy schemes in industrialised and developing countries. But renewable energy will only deliver the benefits it promises on one condition: it must become big enough to make a difference. We cannot expect government to subsidise renewable energy indefinitely. But it is unlikely to be taken up by a significant number of consumers until the cost becomes competitive with conventional energy SOUFCBS. For more information visit We have to make the renewable energy sector work commercially, as quickly as possible, to give it the long-term future it deserves. Shell Renewables is in business to meet this challenge. We are focusing on wind and solar energy, the fastest-growing renewable energy technologies. And we are working to expand markets, drive new technologies forward, lower costs, agree standards, and encourage trading. Deutsche Telekom is installing payphones with solar modules in places where connection to the public electricity grid is impossible or not costheffective Jl And we are working on maior We have the geographic reach, technology development programmes economies of scale, advanced that will make it easier to employ technology capabilities and range solar hechnology in a wider range of applications remote and grid of appliedtions. We are also connected to extend our position n?m?gg to work successfully as a top-tier player in the global, market For photovoltaic? systems/ a .1 v- r. around the world, Our 5 . . ?or todo?ly?s needs: - The solar power rooftop at the Floriade exhibtion near Amsterdam is the largest installation of its kind in the world. Built by Siemens Nederland, the 2.3MW roof comprising 19 panels efpectecl to. generate 1. per a . In Nele?x?Ircq, theBenedictine mon'astery of the brothers 10 support the the and lighting systems, . - ges a and. even computers The flexibility .t and adaptability of solar technology . .V 4 is particularly . . bene?cial in . I 7, developing . -. r' markets. For - ., example, in the 1 - Ethiopian desert, - a; I medicines and .1 .- 7' vaccines are transpo?ed In -. War-Powered Of all the renewable sources of energy, wind power is the closest to achieving commercial viability. Improvements in turbine technolo are bringing down wind farm operating costs and government- backed fiscal incentives have provided extra stimulus. The installed generating capacity of wind turbines has grown by 40% year on year since 1994. Shell WindEnergy?s capacity is growing rapidly. From just four farms and? "ll? .. - perations and arketing. In this process, we rely on our financial strength, the wealth of skills and expertise we have gained on- and off-shore in the oil and gas industry, and the great of our industry partners. Together we have successfully taken on a host of technical and other challenges to supply wind power. Our earliest proiects at in the North Sea and Harburg in Germany provided invaluable experience of Working in harsh conditions and \4 I -v connecting output to the public electricity grid. AtRock River, Wyoming, our first commercial-scale wind farm took less than four months from breaking ground to generation start-up. The 80 megawatt wind farm at White Deer in Texas was constructed in 15 weeks and provides enough power for 30,000 households. of. Il'hin the next . ,erating wind Shell's wind proiect at Bl Shell?s site at in the UK No . Harburg in Sea was the Germany was world?s first the world?s first offshore refinery location to development host wind turbines . [37g - . . Shell WindEnergy?s first commercial- 3- . scale wind farm 3-4 ?ji'f. at Rock River, 5.37." .. . -- Wyominggenerating . capacity of 50 .- megawatts The 80 megawatt wind farm near Amarillo, Texas can provide pow for up to 30,0 households l? The energy system evolves In response to consumer preferences, technology options, and the needs of society. We have a responsibility to anticipate change and meet our customers? expectations? Vice President of Strategy Planning, Shell Renewables The future If; _l The energy sector has a history of tremendous change and volatility. There is no reason to think the future will be any different. Concerns about climate change, together with the need to secure energy supplies for the future, mean that the energy chain must become progressively decarbonised as we move forward into the 2ist century. Shell's analysis of long?term energy scenarios suggests different possible routes to decarbonisation. The world may follow a direct path to renewables, supported by gas in the medium term. Or it may take an n: J. indirect path, via a global hydrogen economy that grows out of new developments in fuel cells and other technologies.* Either way, expect the renewables share of the energy mix to increase. And, within the basket of renewables, expect wind and solar to continue growing faster than the other new energies. In Shell Renewables, we aim to ensure that we will be ready for the future whatever form it takes. While much of our effort focuses on wind and solar photovoltaics, two of the fastest-growing and most mature forms of renewable energy, Shell is also actively pursuing developments in biofuels, geothermal and hydrogen. Shell is involved in the marketing of biofuels in the United States and South America and has purchased an equity stake in logen Energy Corporation, a world-leading bioethanol technology company. Shell?s investment will enable logen to develop more rapidly the world's first commercial-scale biomass to ethanol plant. In our ioint venture with Geot?rmica Salvadore?a, new technology to tap energy from ?hot rocks' thousands 8 *Our ideas are explained in detail in the publication ?Energy Needs, Choices and Possibilities: Scenarios to 2050?. For more information visit of metres beneath the earth?s surface is being tested in a pilot proiect. If successful, this geothermal energy will generate up to five megawatts of power for the El Salvador electricity grid, opening up the possibility of using this technology in parts of the world where geothermal energy had not been previously considered viable. Meanwhile, Shell Hydrogen is engaged in several collaborative ventures focusing on fuel processing design and applications, hydrogen storage products, and zero-emission power generation. 6% 0%008 0000 Biofuels marketing 00 made from the fermentation of sugars derived from the plant fibre in renewable feedstocks such as wood and straw. Compared with gasoline, ethanol made from plant fibre releases over 90 percent lower carbon dioxide 07900 Extracting energy from hot rocks 00 0 0?2? 00 <60 0 0 OO electricity from heat deep beneath the earth?s surface geothermal energy has the potential to become more widespread with Shell?s hot fractured rock pilot proiect in El Salvador 0 0 000000 %8%00 OO 803 Shell Hydrogen Shell is part of a consortium planning to enable Iceland to become the first country in the world to replace traditional fossil fuels with hydrogen. The consortium, 6? 00 which includes and Norsk Hydro, will work with the Icelandic authorities to test the technologies and distribution systems. If the trial is successful, eventually all 0 Iceland?s transport systems, including its large fishing fleet, could use hydrogen. C?s. QM) 2. ifs/x ff Shell Renewables Shell Renewables is active in over 90 countries spanning Europe, the Americas, Africa, the Middle East and Asia Pacific. Across the globe, we leverage our technology and project experience, our brand and our partnership skills. Whether we're supplying solar installations to consumers and businesses in Germany and the Netherlands, or providing stand-alone systems to generate electricity tor villages in the Philippines, our ultimate aim is the same: to develop a business that is both tastgrowing and commercially sound. 10 That business depends on striving for excellence in everything we do. From researching and developing solar technology in Germany to cell production in North America. Whether generating reliable ?green? electricity from wind farms in the US, or installing solar systems that power telecommunications in Cameroon. Collaborating through joint ventures in South Africa or supporting micro- credit schemes in India or Sri Lanka. California Shell Solar has world-class facilities for growing producing cells and manufacturing modules Wyoming/Texas/ California . Shell WindEnergy has commercial scale wind farms that generate 230 megawatts of power El Salvador Shell is testing new technology to tap energy from 'hot rocks' below the earth's surface ell -- I - ol'?Pol'P the <7 -ost modern energy output manu - of one million facilities in u: kilowatt hours per world, with year, achieving a state-of the-a reduction of technology around 1,000 tons of carbon dioxide South Africa At the Hluleka Nature Reserve, a hybrid mini-grid system delivers cheap, efficient energy from wind and sun. Visitors can now enioy this beautiful place without the constant noise of diesel generators rman 'heosola -ower lsenkirchen, lndia/Sri Lanka A single Shell Solar Home System can provide enough electricity for lighting and a few hours of television Working wit Philippines local banks, affordable in rural villages 'l'l The future of renewable energy Shell believes there is a viable and exciting future in renewables: from an economic, social and environmental perspective. Renewables can have an important impact on greenhouse gases and climate change. But energy businesses like Shell cannot embrace renewables just because of environmental and PR benefits. Nor can we expect governments to keep funding renewable energy indefinitely, or consumers to pay . more for it, when cheaper energy sources are available to them. 12 We have to 'make the renewable energy sector work commercially, as quickly as possible. Because unless consumers buy renewable energy, it has no future. If we want consumers to buy renewable energy, they have to see what's in it for them. Environmental benefits on their own won?t be enough. For the majority of consumers convenience and cost are iust as important in their choice of what to buy, if not more so, than ?what?s good for you". Consumers want things to be simple, transparent and attractive. That means we need action: to lower costs by expanding markets, which in turn will accelerate experience and lead to even lower costs. We must create an adequate market structure for green certificate trading. Because the costs of renewable energy are still so high, in relative terms, this income stream from certificates is very much needed. At the moment, standards have yet to be agreed about what constitutes renewable energy production. Until those standards, and the market structure, are in place, a key enabler for renewables growth is missing. Everyone has a role, direct or indirect, in making this happen: governments, the energy industry, other businesses, financial institutions and consumers, in both developed and developing countries. Shell Renewables looks forward to playing its part. 2002 Shell International Renewables This brochure has been printed using environmental print technology which is both water and alcohol free. No tilm processing chemicals were used and 90% ot the cleaning solvent was recycled. Electrical power was generated from renewable sources and the inks used are all vegetable-based The paper used for this brochure is Revive Silk. A minimum of 75% of the raw materials are made from 100% de-inked, postconsumer waste. All mill waste is recycled and can be as much as 25% ot the total libre content. ?64? ain?t 1 Tc.