Shell Plc’s head of European renewable energy, Thomas Brostrom, has decided to leave the company as the oil major reviews its strategy to focus more investment on fossil fuels.
The exit comes as Shell trims its renewable energy ambitions to focus on the oil and natural gas that generate most of the company’s profits. Chief executive Wael Sawan is aiming for better returns for shareholders and sent a message to the renewables business that cutting CO2 emissions had to be matched with higher profits.
Shell announced Brostrom’s departure in an internal memo seen by Bloomberg, which was confirmed by a company spokesman. Shell had hired the executive of Danish wind energy giant Orsted A/S amid its push into renewable energy.
“Thomas Brostrom has decided to leave Shell to pursue an external opportunity,” a spokesman said by email. “We wish him all the best and thank him for his significant contributions to Shell’s renewable generation business.”
Brostrom confirmed that he has decided to leave, but declined to comment on where he is headed next or why he left.
In a restructuring that will take effect July 1, Shell is eliminating Brostrom’s global role as executive vice president of renewable generation. The production of energy from renewable sources will be overseen by Shell Energy’s regional heads, who report to Executive Vice President Steve Hill. Greg Joiner will take over as senior vice president of Shell Energy Europe, moving from his current job as vice president of Shell Energy Australia, according to the memo.
Brostrom’s departure follows the decision of a Shell energy trader, Steffen Krutzinna, to step down due to Sawan’s change in strategy.
Under former CEO Ben van Beurden, Shell aggressively expanded into renewable energy and even had ambitions at one point to be the world’s largest electricity producer. Spending in the company’s energy and renewable solutions unit has grown steadily in recent years.
But since Sawan took over the top job earlier this year, Shell has said it will be more selective with its green energy investments. This means a greater focus on projects that can best integrate with the company’s business skills. It will also withdraw from the offshore wind segment in which Brostrom has specialized and which Shell has expanded in recent years.
