The stock of Royal Dutch Shell plc (ADR) (NYSE:RDS.A) closed at $61.85 losing 0.94% in yesterday’s trading session. This company has disclosed that it will soon be partnering with some of the world’s biggest carmakers in a bid to expand its electric-vehicle charging business in Europe.
The company’s spokesperson has lately been quite outspoken regarding the progress they have been making in the recent times. He has disclosed that they are making preparations for life beyond oil. Shell struck an agreement with IONITY and it is aimed at raking in the high-powered docks to about 80 highway sites by 2019.
A number of the power giants and the niche players are currently taking on the establishment of vehicle-charging networks in Europe. However, Shell affirms that IONITY technology is essential when it comes to addressing the issue of journey distances.
At the moment, electric vehicles account for quite a minute fraction of the global car market. The sustained period of low crude prices as well as the alarming pace of growth of is pushing most of the oil companies around the globe to reassess the century-old business models. The wind of change is sweeping fast across the continents as efforts continue to be made towards the adoption of cleaner modes of transportation.
The company’s spokesperson opined, “Under Shell’s most aggressive projections the company expects the global electric vehicle fleet to grow from about 1 percent of the entire auto fleet today to 10 percent by 2025, displacing oil demand equating to about 800,000 barrels per day.”
Rival BP plc (ADR) (NYSE:BP) back in August went in talks with a wide range of electric car manufacturers on deals that targeted offering battery recharging docks at its stations. Istvan Kapitany, who happens to be Shell’s head of retail, said that most of the customers wanted to go on long journeys in their electric vehicles. Most of them felt confident because it was comfortable, reliable and convenient. It takes quite a short period of time to recharge the electric cars.
If everything moves according to plan, about 80 charging stations will be deployed in Britain, Belgium, Slovenia, Hungary, and Czech Republic.