Shell is boosting its cooperation with Ferrari by signing a ten-year corporate power purchase agreement (CPPA) to supply renewable energy from a Shell-built and operated plant to the iconic Italian luxury carmaker.
Shell Energy Italia will provide 650 gigawatt-hours (GWh) over ten years to help decarbonize production at Ferrari’s Maranello factory in Italy. The power supplied by Shell’s Italian unit will be sufficient to cover half of Maranello’s energy needs.
Additionally, Shell Energy Italia will also provide renewable energy certificates to cover all of Ferrari’s energy needs in Italy.
The agreement is another step toward decarbonizing the Maranello plant,
Ferrari’s chief industrial officer, Davide Abate, said.
The deal with Shell will help Ferrari achieve its goal to reduce its Scope 1 and Scope 2 emissions by at least 90% in absolute terms by 2030, the executive said.
Shell and Ferrari this year celebrated 75 years of collaboration in motorsport with Ferrari’s racing team Scuderia Ferrari.
Shell has recalibrated its power business in recent years to select markets and has streamlined operations as it focuses on oil and gas production and LNG trading.
Shell and the other European supermajor, BP, have shifted focus back to their core oil and gas business. The pivot took place after the energy crisis made energy security and affordability more important than sustainability, while high interest rates and supply chain issues further reduced already meager returns from clean energy projects and made many new energy ventures uncompetitive.
France’s TotalEnergies, for its part, has been boosting its integrated power business to seize market opportunities from rising electricity demand.
Earlier this month, TotalEnergies announced a power purchase agreement with Data4 to supply renewable electricity to the data center developer’s sites in Spain for 10 years, as the French supermajor looks to boost its integrated power business with the key driver of global electricity demand.
By Tsvetana Paraskova for Oilprice.com
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