Shell to pull out of UK wind power scheme

The Telegraph 1 May 08;

Green groups have reacted angrily to news that Shell is looking at selling its share in the world's largest offshore wind power scheme.

The oil giant said it was looking to dispose of its 33 per cent shareholding in the £2 billion London Array project which, if built, would supply enough electricity to power a quarter of Greater London homes.

E.ON, a partner in the 341-turbine project, said it was disappointed by Shell's decision, which could delay the project and introduced "a new element of risk" to the scheme.

Shell's decision is thought to be an economic one, with money redirected towards potentially more profitable wind schemes in the US.

But Friends of the Earth energy campaigner Nick Rau accused the oil company of leaving a renewables project "high and dry" while investing in fossil fuel production which added to the problem of climate change.

"We're very disappointed that Shell - which touts itself as a progressive green company - is pulling out of the London Array project, and leaving a key clean energy project high and dry.

"Shell announced a 12 per cent profit rise yesterday to £3.92bn. It should be investing those profits in renewable energy projects not focusing its efforts on making money from sucking fossil fuels out of the ground and contributing to climate change," he said.

Charlie Kronick, Greenpeace climate campaigner said Shell and other oil companies had never been serious about investing in renewables.

"The company's shares in London Array were their last token commitment to renewable energy after selling off their solar interests last year at a discount price. And now they've even ditched this.

"In the meantime, Shell and the other big oil companies are investing millions to extract oil from the Canadian tar sands - one of the most climate-wrecking forms of fossil fuel extraction on the planet," he said.

A spokeswoman for Shell said: "We constantly review our projects and investment choices in all of our businesses, focusing on capital discipline and efficiency.

"In this context the London Array project, which is still in its development phase, is being looked at as part of an ongoing process.

"We have a small but growing wind energy business. Our current focus for new projects is in the United States where we can leverage our business development skills, project management and power trading skills, and of course government incentives to deliver what we believe are competitive returns."

Environment Secretary Hilary Benn described Shell's decision as "very disappointing", especially in view of its massive profits announced this week.