Shell has acquired NewMotion, the largest electric vehicle charging network in Europe, the company said on Oct. 12.
Royal Dutch Shell (NSYE: RDS.A) has agreed to buy Dutch-based NewMotion, marking the company’s first deal in electric mobility as demand for cleaner vehicles is expected to soar.
Shell said NewMotion, which manages over 30,000 charging points for electric vehicles in western Europe and offers access to thousands more, will operate in parallel to Shell’s program of rolling out fast charging points at its forecourts.
“They’re complementary offers. One is fast charging on the go on the forecourt and the other is a slightly slower rate of charge at the workplace or at home. At this stage there are no plans to integrate the two,” Matthew Tipper, Shell’s vice president for new fuels, said.
Shell is installing electric vehicle charging points at retail stations in Britain, the Netherlands, Norway and the Philippines.
Demand for electric vehicles is expected to rise significantly in coming decades and Morgan Stanley estimates that 1 million to3 million public charging points could be needed in western Europe by 2030. Currently, there are fewer than 100,000.
Shell expects around a quarter of the world’s car fleet to be electric by 2040.
Oil companies are growing increasingly aware of the potential threat to parts of their downstream business from the electrification of transport.
Rival BP (NYSE: BP) said in August it was in talks with electric vehicle makers about partnering to offer charging stations at its retail sites.
NewMotion, founded in 2009, has more than 100,000 registered charge card users in Europe and offers access to its own charging points as well as another 50,000 partner locations.
In September, NewMotion signed a deal with Total (NYSE: TOT) to allow the French oil company’s customers access to its electric vehicle charging network.
Shell and NewMotion declined to comment on the value of Thursday’s takeover.
NewMotion had a net turnover of €12.9 million (US$15.3 million) and made a net loss of €3.9 million (US$4.6 million) in 2016, according to its financial statement filed with the Dutch chamber of commerce.
The total capital investment of the Project is over $150 million, and there will be up to 250 people employed at the site during the height of construction activity.
Top oilfield services provider Schlumberger reported a drop in quarterly profit, hit by weak demand for its equipment and services from oil producers under pressure to rein in spending.
Renewable energy growth is estimated at an annual average rate of 11% between 2015 and 2035, with growth in wind and solar capacity up nine-fold from seven percent of total power supply today to nearly 40% by 2040, energy consultancy Wood Mackenzie estimates.