How Batteries will Change Our World

[MUSIC PLAYING] Vicky Edmonds is
our first speaker, the joint head of the Office
of Low Emission Vehicles, and a job– her job share partner,
Natasha Robinson. Vicky’s worked with the
government for around 15 years on a range of
environmental policy roles and tackling issues related to
freight sector emissions, air quality, and aviation
noise emissions. So Vicky, your 10
minutes start now. Thank you. Hi. So Yeah, I thank you
for the introduction. I suppose I’m going to spend
the next few minutes setting the scene for my fellow
speakers and telling you why batteries are front and
foremost of government’s mind right now. So it’s no secret
that the UK faces some massive environmental
challenges right now. So we have the
fairly urgent problem of air quality in our
major towns and cities, and we also have
a big obligation around our greenhouse
gas emissions. So the UK– in fact,
Theresa May yesterday announced that the UK
wants to be the world’s first major economy to legislate
for net zero carbon in 2050 and laid the statutory
instrument in parliament yesterday. Transport emissions is a fairly
big chunk of our greenhouse gas emissions in the UK. It’s responsible for
about a third of them. The energy sector is
decarbonizing quite rapidly. The focus is shifting
towards tank transport. And of that, road transport is
a massive chunk, well over 3/4 of transport
emissions in itself. And so electrification is
really, really important to us. So back in May last year,
just over a year ago, the prime minister
announced our– the first of our future of mobility
grand challenge missions, which is to put the UK at
the forefront of the design and manufacture of
zero emission vehicles, and for all new cars and vans
to be effectively zero emission by 2040. And it’s my team and OLEV’s job
to help deliver that mission, along with colleagues in Bayes
on the manufacturing side. We published a strategy
shortly after that, in July of last year, which
set out a timetable to 2030 in the interim to 2040, where
we have said that by 2030 we want to see at least 50% and
as many as 70% of new car sales being ultra low emission and
up to 40% of new van sales being ultra low emission. That is a very
challenging ambition, and we are working quite
closely with industry on how we best deliver that. We also said that we
would review the situation in the years, and particularly
in the run up to 2025 and consider whether
government needed to intervene. We are seeing progress. So OLEV has been in existence
for about seven years now, but has really ramped up over
the last four or five years. At the moment, we see a 2.6%
market share of new car sales in the UK being
ultra low emission. That may seem low, but we’re
talking about an S-curve, an innovation S-curve. This isn’t supposed to
be a linear trajectory. And at some point,
that will tip so that you’ll go
quite rapidly from, say, 10%, 20% up to say 60%. What we don’t know is when that
trigger point is going to be, but we believe it could
be sometime in the 2020’s. And we need to be ready for
that, both from electricity system benefit,
but also make sure that the industrial base in
the UK is ready for that, and that is what we are working
with Bayes colleagues to do. Taxis is a big success
story for the UK. We are actually almost at 2,000
ultra low emission vehicle taxis on UK streets. We are one of the best
in the world at taxis. We have the LEBC production
in Coventry that– and more taxis coming
from other companies. We are also one of the best
in the world at infrastructure provision. So we have over almost 100,000
now domestic charge points. We have almost 20,000 public
charge points across the UK, 2,000 of which are
rapid charge points. We need more infrastructure,
we know that, but you know, we are doing reasonably well,
again, on a global scale. And as I say, there
is much more to do. So just we have, in
terms of the policies that we have in place
right now, to help uptake of the vehicles themselves,
it’s about generating consumer demand and helping
the manufacturers get supply and allocate
supply into the UK market. We have a series of
vehicle grant schemes that help us do that,
which are subsidies of the price of vehicles. We are working with
dealerships to make sure that people on the
shop floor are trained. EV, sales anybody who’s been
into a dealership probably knows that they are better
at selling ICE engines than they are at selling
EVs at the moment. We’re working very
closely with dealerships to help generate the skills that
are needed to help sell EVs. We do work with the
treasury on the tax system to make sure there
are fiscal measures to help consumer price of EVs. And we are working on launching
a consultation on green number plates. So all electric vehicles could
have a green number plate which helps to identify on the
road to generate that consumer interest in these vehicles,
get people interested, and get people going into
dealerships to find out more about them. And we obviously have
new car regulations coming from the
European Union, which will also help manufacturers
allocate supply into the UK. As I said, we do believe we’re
doing well on infrastructure. We need to do more. We need to support one of
the best infrastructure networks in the world if we want
people to buy these vehicles and if we want to see
all new car sales being zero emission by 2040. We are– we have a large
kind of pot of money called the Charging
Infrastructure Investment Fund, a $400 million pound pot,
which is due to launch shortly, which is designed to help public
rapid charge points roll out across the UK. We are also shortly to consult
on regulating for all new homes to have a charge point. If we want everyone to
have these vehicles, we need– and most people
have off street parking, over 60% of the UK,
then their homes have to have a charge point. So we need to make
sure that that happens. We also have a number
of grant schemes to help consumers put
charge points in their homes and workplaces. Importantly, we also
have an act of parliament which passed, again, shortly
after the prime minister made her announcement last
year, which is one of the first acts of its kind. It’s a facilitating act, so
we don’t have to bring forward the regulations in
this act, but we will do if industry
don’t deliver a consumer offer for charging. So that means that when somebody
turns up to a charge point, it has to work, they have
to be able to access it, they have to be
all to pay easily, and we have a number
of regulations that allow us to act and
intervene if the market don’t deliver those provisions. And also in terms of I
said we need to prepare for this mass uptake. We need to make
sure the electricity system can manage the load
that’s going to be on it. And a key part of that is
that all these charge points are smart, that they can
communicate with each other and with the grid so that
those managing the load can turn them up and
down where required. And we’re about to bring forward
regulations on that as well. But this isn’t just about our
environmental obligations. This is actually a massive
opportunity for the UK right now. So this is also a key part
of our industrial strategy. The vehicles themselves, they
are– total cost of ownership is lower, so
they’re better costs for consumers and businesses. It’s good for energy
security, but there are also some very massive innovation
opportunities for the UK. We have obviously the
Faraday Battery Challenge, which is part of why we’re here
today, which is a $246 million pound R&D fund into
battery development. We have numerous other R&D funds
into the power electronics, so the motors and
infrastructure as well. So the future of infrastructure
isn’t necessarily big charge points,
but wireless and other innovative technologies. And we are also one of the only
people in the world seriously looking at what’s
called vehicle-to-grid as an energy storage mechanism. So this is where the
car battery itself can be used as a storage system
to help supply electricity back to the grid. So this is all a really
good opportunity for us, and it’s estimated that this is
a tens of trillion pound market that the UK can grasp if
it’s one of the first movers, and that’s what we in
government want to see. So I think just want to finish
on what Theresa May– we had a big zero emission vehicle
summit back in September, and a quote from Theresa
May that this isn’t just a problem for governments
and it isn’t just a problem for the UK, it’s a
shared problem for governments and industry and the world to
come together to tackle some of the challenges that we face. Thank you. [APPLAUSE] Thank you. Thank you very much. That was perfectly–
actually, under time. So that’s amazing. Our next speaker is
Dr. Colin Herron, who has 40 years experience in
the automotive industry, much of it at Nissan. In 2011, he founded
Zero Carbon Futures, and he works with the mayor
of London and Transport for London on their future
plans for electric vehicles. Colin. Evening, everybody. That’s me. Go back to 1973, I
left school and I started an apprenticeship. The apprenticeship ironically
was making crankshaft seals for Ford engines. That’s what we used to supply. Then I joined Nissan around
’87, and in my last years with Nissan, I was seconded
to local government. When I was in
local government, I met a civil servant
who mentioned something about electric car from Nissan. In 2009, I went to Japan,
and I test drove the LEAF. It was actually
disguised as a Tiida, and we drove it around
a little test track. I had no concept that
this vehicle was coming. Anyway, we came back to the
UK, we worked with OLEV, and we decided, wouldn’t
it be a good idea, if they’re going to make cars
in a factory, when they came out there was some infrastructure? Because it would be
a bit embarrassing if they came out and there
was nowhere to plug them in. So with OLEV, we put the
northeast infrastructure in, and we put the first
regional network of rapids. So from that work, we’ve evolved
into doing a lot of research into who does what,
where, and when. And if anybody follows
me on LinkedIn, in my favourite target is people
who are blowing this industry out of proportion. I just wanted to point out
where zero carbon futures is, because lots of people think
the midlands is the centre of the universe. I’ve just put the mileage
on there just to prove that Tyneside is not only
the centre of the UK, it is the centre
of the universe. [CHUCKLING] Fortunately, I’m right
next door to Nissan, which is quite helpful. And we’ll have another
speaker coming on from there. So the northeast has got a bit
of a heritage on electricity. Guy called Charles Parsons– some you might know
about this guy– Joseph Swann, and
Lord Armstrong. Now, Joseph Swann’s got
a bit of a challenge on the electric light bulb with
some Americans, but never mind. We’ll just stick with the truth. [LAUGHTER] The first house in the world to
be lit by hydroelectric power is up in Northumberland,
the first street to be lit by electric
power is in Newcastle, and the first lighthouse,
which I was amazed to find out. Anyway, moving forward. As I came into Kings Cross
the day, one of the new Azuma came in, which is made in
our region, and the LEAF. And importantly, why
we’re here is the battery. Let’s go forward now
to the power networks that we have in the UK. The current system
is we generate power, it goes into the grid,
it goes into a house. The best we can do is we
can put a bit of solar on, which then allows a little
bit to go back to the grid. The reason I’ve got
the car in the triangle is the current car has got
nothing to do with this. All it does is waste
energy, apart from the fact it kills us as well indirectly. So there’s no link at all. As we go forward, we
have this pattern here. So at the moment,
the power flows will go in possible
induction charging, static, dynamic, et cetera. However, all of
this is possible. It’s an unturned
tap of possibilities of power moving
in all directions, and of course, the
government, who hope if we get
this really smart, it’ll offset building
power stations. The only problem we’ve
got is, at the moment, the sums don’t add up. Now there’s a big stadium
there, but I’m not going to mention
that, because I know Peter’s going to mention it. So at the moment we’ve
got the option of power flowing all over the place. Right. But we got some challenges. The battery itself
has got a power curve. Now, one of the challenges
with the power curve is if you go to the petrol pump
and you stick your pump in, you know exactly what you’re
going to get in five minutes. When you charge
your car, you do not know what you’re going to
get in this period of time, because not every
maker, every model has got a different power curve. So 80% to fill some
cars is 30 minutes, or it might be different. You might hear about
350 kilowatt charging. You might, but that’ll
be a long time away. We don’t know how the
batteries are going to degrade, but what I do know from our
research is as it degrades, it takes longer
to fill, and I’ll tell you why it’s important. What is going to be the
capacity for the common person? Is it 40 kilowatts? Is it 60? Is it 80? I’ll tell you why that
makes a big difference. And what is going
to be the chemistry? What is the final
that chemistry? Is it going to have
a lot of cobalt in? Is it going to be lithium? We don’t know. So if we go to the left and
we look at the infrastructure, we have AC charging
we have DC charging. The AC charging is low
power and it’s quite linear. The DC charging varies a lot. Now, I hear a lot of
people say we do not have enough infrastructure. And I ask everybody, so
how much should we have? Well, it’s– we don’t know. Because the number and amount
of infrastructure we have is a function of the
number of vehicles, the charging curve
of the vehicles, and the behaviour of you lot. And most of you don’t
drive electric vehicles, so we don’t know what
you’re going to do yet. So we’ve got to try and guess
a national network of charges based on what you might do,
which is causing big problems, and the battery chemistry
and the car makers won’t tell us what
they’re doing. So we now have 3
kilowatts to 350. So there’s a lot of
publicity about the fact that you’ll fill a car in
five minutes at 350 kilowatts. No you won’t. That is a long, long way off. But one of the
problems we have is if we put an infrastructure
in for a one hour charge and it then takes
five minutes, we’re probably going to put five
times as much infrastructure in as we actually need. So if we do go to
solid state batteries, it’s actually going to be
a positive and a negative. We also have a problem
with PHEV versus BEV. And what this effect
is the viability of the infrastructure,
because it has to make money. And at the moment,
the infrastructure, though everybody thinks
we don’t have a lot, is tremendously underutilised. One of those rapid charges
cost 45,000 pound to put in. And to fill a car is about
five pound, and most of them get used twice a day. So you can see the problem. On the other side,
we’ve got the question of battery manufacture. Where are they going to be made
and how we’re going to do it? If we can make 19 million
engines in Europe, we’re going to have to
make 19 billion batteries. At the moment, we make 50,000,
which is a bit of a challenge. Some people buy cells and
they make their own packs. We then get to the
question of skills. Somebody asked me
how many people need to be trained in batteries,
and I said, about 30 million. I go to a pub and
somebody says, what do you know about batteries? What do you know about EVs? So I have to tell them. So it goes from people saying,
I’m thinking of buying one, to somebody who’s
got to fix one. And then what do we do when
we take them out the vehicles? We’re talking about
400 volts, 800 volts. It’s industrial machinery. It will kill you if
you get it wrong. First responders. What happens when
the electric car hits a petrol car, hits a hydrogen
car, hits a diesel car, and they catch fire? First thing you do is run. But apart from
that, somebody has got to deal with the problems. We’ve got to train the
whole fire service, we’ve got to train
the police, we’ve got to train the
ambulance service into what these vehicles do. Second life. When they come out, how are
we going to repurpose them? Is there actually a market? Is there a value
for these batteries? We don’t actually know yet. Apprentices. We got lots of apprentices
being trained on standard motor technology. We need to start training the
young people of the future. And I would argue degrees,
it’s absolutely pointless now, unless you are
going into research taking a standard degree
in automotive mechanical engineering. You can’t survive. I’m a mechanical
engineer, and boy, am I struggling at
what electron is. I tried to understand electron,
I got into particle physics, and at the end I’m giving up. It’s too hard. But we need to
address the skills. We need to address
the infrastructure. But until we decide
what a battery is and what the performance
characteristics of the battery are, we can’t do either. Thank you. [APPLAUSE] Thank you, Colin. Our next speaker is Peter
Stevens of Nissan Motor. He is Head of UK External
and Government Affairs. Great. Thank you very much. And it’s always a
pleasure to follow Colin, because he’s done a much better
sales job for the northeast than I have. I just want to endorse
everything that he said. What I would say
is Nissan, we’ve been in the business of making
electric vehicles in the UK now for just coming
up to a decade. We make the Nissan LEAF,
based in Sunderland, and Sunderland is also the home
of the UK’s first gigafactory making electric
vehicle batteries. My background is as a
terrible inorganic chemist. I did this decent thing
after finishing my PhD and deciding the world
research wasn’t for me, and I went to work in
the water industry, because I was particularly
interested at how science met the real world. How that interface between pure
science and then they applied lives that we live,
how that works. And from the water industry, I
ended up working in government, looking at the policy framework. So I particularly worked
on renewable energy, then I looked on labour markets,
and finally looked at European policy before joining Nissan. And what I’m doing in Nissan
is looking at the environment that we need, the
policy environment we need to decarbonize
transport and to create the electric ecosystem
of the future. And what I want to do
in the next 10 minutes is talk a little bit
about the journey that we are on as an industry,
from a manufacturer’s point of view, and
also give a pointer to some of the opportunities
that we see ahead. So I’d like to take
you back a little bit. This is a previous
model of mobility, and whatever you
might say about it, it was certainly functional,
it was certainly sustainable, but it probably wasn’t much fun. And if we can look
forward, there’s really a revolution
that came along with the internal combustion
engine, and all of sudden, driving became fun, moving
from 4.0 miles an hour up to the heady speeds nowadays,
the joy of the open road. And today, mobility is seen
both as a rite of passage. If you’ve got
teenage children, you know how much they long for
their 17th birthday so they can get loose on the roads. I’m terrified of
that as a parent, but you also see it as a
right, and there is a sense now that we have a right to
mobility when we want it on demand and affordable. But this comes with
a challenge, he says, which is around the
air quality challenge. So we have to acknowledge
that our mobility comes with environmental consequences,
both in terms of air quality and concerns about
pollution within cities, but also in terms
of carbon dioxide and the challenge
of climate change. And this will particularly
come to the fore as we see the
developing world wanting to take hold of the mobility
which we now claim as a right. So how do we manage
this transition from a fossil fuel based economy
to a clean energy economy? How do we decarbonize
our economy? And particularly, how do
we decarbonize transport? And it’s been interesting
looking at the work the Committee on Climate
Change has done around the decarbonization of
transport and recognising that decarbonizing transport is one
of the early wins that we can make. It’s one of the ones where
the technology’s already existing that we can exploit. And it’s, I believe,
particularly important, because it’s something that
we as individual citizens can do to make our contribution
to this transition. But this isn’t a new game. So Nissan made its first
electric vehicle back in 1947. And so there’s a lot
of talk about this being a new technology. It isn’t. Admittedly, the
range wasn’t great, and the top speed wasn’t great. It used lead acid batteries. But what you see now is a huge
expansion of electric vehicles. We anticipate that
in the next year there’ll be something
like 20 different models of electric vehicle
coming onto the market. And so we do see the market
being at a tipping point. Even in the four or
five years that I’ve been working with
Nissan, the discussion about electric vehicles has
gone from niche to mainstream, so we’re seeing an
acceleration of this debate. But it’s an
interesting question. I put these two images up there. Which makes more sense,
a petrol coloured– petrol powered phone or
electric powered car? But yet, we still
have this mentality that a car has to
be petrol powered. But if you look at the
example of the phone, when I first bought my
mobile phone, it was a brick. I didn’t know why on earth
I would want to text anyone. I was only buying
it for the minutes. But I didn’t have any friends
who had a mobile phone, so no one phoned me. Aw. You can go aw at that point. But if you look at now how
we use our mobile phones, they are no longer
telecommunication devices. We no longer use
our free minutes. Each month I look at my
mobile phone statement and find I’ve not used any
minutes, because nowadays, it’s all about VoIP, it’s
all about data services, and our phone has gone from
being a voice communication tool to being our
common everyday gateway to the internet. So our model of use of
the phone has changed and the business models
around the phone have changed. So we’ve moved
into an app economy away from a model that was
based on voice communications, and I believe you’re going
to see the same transition around the car. The role of the car
is going to change from just being an instrument
of mobility to being a wider part of our lives. And we talk about
intelligent mobility, and we have three pillars
that we identify within this. The first is about
intelligent drive, so looking at how connected
and autonomous technologies are going to make our driving
experience safer and more convenient. We talk about
intelligent power, which is about the move
towards electrification and the replacement of fossil
fuels as attractive fuel. And finally, we talk about
intelligent mobility– intelligent integration,
which is looking at how the car integrates
into a wider ecosystem and into our lives, and
that’s what I wanted to focus on in particular. And so when we talk
about integration, there are a number of
areas in which we see that integration taking place. So we already have GPS systems. We already have the
potential for Bluetooth connectivity connecting
to your mobile phone. But in the future, we’re going
to see our car interacting with other cars and with the
transport infrastructure. We’re going to see
in interfacing also and integrated into
power networks. And what I wanted to talk
about was this vision then of what an integrated
future might look like. So this is an example of
how you could integrate an electric vehicle using
technology that’s available now into your everyday life. So everything from solar panels
on the roof to a static storage system that enables you
to optimise that use of PV arrays on your roof,
looking at using the storage in the battery, and
then feeding into a smart grid. Feeding into the grid
and drawing from the grid as the grid requires. And we’ve been doing
some work already. Colin neatly teed
up a project we’ve been involved in with
the Johan Cruyff Arena in Amsterdam, which is
looking at just this process. So we’ve now installed
the largest integrated static storage system in
Europe using the batteries from about 148 Nissan LEAF to
produce three gigawatt– three megawatts of storage. And that is going to
be able to not only act as a power supply for the
arena when holding events, in case of any
interruption, but it allows them also to optimise the
generation– renewable energy generation from the
solar roof, and also allows them to load
manage on the arena to manage down the peaks
and troughs on the arena and also to support EV
charging in the car park. We’re also involved
in projects in Denmark which are looking at fleets
using vehicle to grid, where our initial experience is
that fleet operators are able to generate revenue
by making the battery storage in their vehicles
available to the energy network to stabilise the energy network. And even this past week, I was
listening on the radio this morning to the Today programme. They had a piece where I
think two weeks ago the energy price went negative. So typically, the energy
price has ran about 50 pounds. It went minus by 50 pounds. And the point they were making
was if you had a static storage system, such as the one that
we’ve put in Amsterdam arena, you could draw down and be
paid to charge your battery during that period and then
release it back onto the grid. So this is an area that we
see has immense potential for the future. But looking beyond
that, we anticipate that by 2022,
there’ll be something like a million electric
vehicles on the road. Now, once those
electric vehicles come to the end
of their life, we find that the batteries
still have something like 75% of its capacity left. So this offers an opportunity
for Second Life battery storage and what that might do to
the future energy network. At the moment our
energy network is based on a centralised system of
large power stations connected to centres of population
using large wires going across countryside. When we have this
opportunity that comes from a supply of
second life batteries coming onto the market at
a reasonable price, what’s that going to do for
our model of our energy system? It could unlock vast amounts
of intermittent renewable generation, such as PV, such
as onshore and offshore wind onto our energy grid. So batteries, I think,
will lead not only to a revolution in
terms of mobility, not only to a zero
carbon transport, but also will radically
change the shape of our energy network. Thank you. [APPLAUSE] Thank you. Thank you, Peter. Our final speaker is
Jo Coleman of Shell. She’s worked for
Shell for 20 years, and she is their UK
Energy Transition Manager. Jo. Thank you. Obviously, I’m very eager. So by way of background,
I’m an engineer. And it makes me particularly
honoured actually to be standing here and a little
bit in awe of this room and the history that’s in here. Let’s go on to my slides. So I was– I’m sorry, I should also
say I’m from the midlands, so I have a slight
disagreement with these guys. So I’m an engineer by
background, as I said. I joined the energy
industry and I joined Shell actually
straight from university and worked in oil and gas. And I joined the energy industry
because, for me, energy is just what makes our lives go round. It’s what makes the
world we live in today. And I worked for Shell
for about 20 years, and then I joined a company
called the Energy Technologies Institute, based
here in the midlands, developing and demonstrating
some of the technologies that we were going to need
throughout the UK’s energy transition, including
things like the integration of vehicles and
electric vehicles into our energy system. I returned to Shell
just over a year ago to manage all of Shell’s
activities related to the energy
transition in the UK. So you might think, why would
Shell be interested in, as this says, the age of electricity? Why would I be here
talking about a future of an electrified economy? It all starts from our support
for Paris and the Paris Agreement. And here in the UK,
we’re very openly also supported the
CCC’s recommendations that are now being adopted
by the UK government to aim to tighten the
targets from 80% in 2015 to 100%, so net zero
emissions in 2015. But when we think about
the Paris Agreements, we think about them in the
context of the Sustainable Development Goals. And they were kind
of going through kind of being released about the same
time as Paris was developing, and there were three of
those that are particularly relevant to energy. So the first of
those is no poverty, ending poverty globally. There are– you know,
the global population is expected to grow
from about 7.8 billion today through to
about 10 billion by the middle of the
century, and that’s a lot of people who
then need access to affordable and clean energy. So we need affordable
and clean energy, but we also need to deal
with climate change. And that means that as
the energy industry, we’ve got a dual challenge. We need to deliver more energy
to bring more people out of poverty, but we also
need to make it cleaner. And that really is– that’s at the heart of how
Shell sees its purpose. Our purpose is to deliver more
and cleaner energy solutions. So when we think
about this future, we’re quite famous
for using scenarios. We’ve been developing scenarios
in Shell for about 50 years, and we use them to
inform our own strategy, but we also use them
to engage externally. And our latest
scenario called Sky is a scenario that meets the
goals of the Paris Agreement, and it shows that
we can deliver that in a way that is
technically, economically, and industrially possible. But it is tremendously
challenging, and in order to deliver
that, there are– you know, there’s a requirement
basically for governments, for industry, for consumers, for
society to collaborate and work together. And we see this as
kind of a process of sort of, if you like,
mutually reinforcing drivers of change. And in order to
meet these targets, we need to see things like a
trebling of energy efficiency. We need to see the
end to deforestation. We need to see
radically new policies. We need to see
capture of emissions. But perhaps most
relevant for today, we need to see a massive
increase in the electrification of final energy, so a
fivefold increase potentially globally from today. But in the UK,
that will be, say, taking electrification of
end use demand from about 20% today through to about 60%
by the middle of the century. And where will that
energy come from? Well, in our Sky scenario– and it is only a scenario,
it’s not a forecast. But in our Sky scenario, we see
solar as the dominant energy source by about 2050 in the UK. And sadly, that is not the case. We’ve all lived the
same week of rain. So in the UK, we see that
very strongly being wind. So why does
electrification go up? Well, I think we’ve heard
also from our other speakers that it’s about– part of it is about
electrification of transport. So in our Sky scenario, and
this is global, about half of new cars need to
be electric by 2030, and by 2050, all
of new cars need to be electric or low emission. And that’s a
tremendous undertaking, but countries like the
UK need to go quicker, and they can go quicker. So in Sky, in the UK, we see no
new sale of electric vehicles earlier than the 2040 date,
we have in legislation today as a target today. So what do we as Shell
want to do about it? What are we doing about it? Because we see tremendous
opportunity in power for Shell. So– and the UK is
actually a testbed for us for much of that. So the first thing
that we’ve done in the UK, one of the
things we’ve done in the UK is buy an energy company. We bought First Utility,
and we’ve recently rebranded it as Shell Energy. So we now sell power and
gas and smart solutions to around 800,000
homes in the UK. And you know, we just heard
actually about smart solutions, and in a way, I agree
very much with what Peter said in it almost
we will become competitors in the future, which makes– is the way our
industry will change. So we own Sonnen– a company called Sonnen, who
develop and instal batteries in homes. There are over 10,000 homes in
Germany with a Sonnen battery in them, where they can store
their home produced energy and they can also sell
it to their neighbours. They can sell through the
Sonnen network to other people. We also know that
people are going to want to charge their cars at home. So we own New Motion, who are
one of Europe’s biggest charge point operators. They operate a network
of about 100,000 charge points across Europe. They’re small in the
UK, but big in Europe. And all their charge points
are smart, and as we’ve heard, that’s really important. So we’ve been buying what I
like to think of as pieces of the jigsaw, and
this is now around really knitting them together. And what isn’t
shown on this chart is that we also want to
invest in offshore wind. In fact, we are investing in
wind, both onshore and offshore outside the UK. But in the UK, we haven’t yet
been successful in doing so, but we certainly want to. But we know as well
that this isn’t just about energy use in the
home, because although I think most people would like
to charge car in their home, not everybody has a driveway. There’s the 40% who don’t. And we also know we
want to go on journeys. We want to go on
longer journeys, and we want to be able
to charge on the go. So we’re rolling out
rapid charge points at our retail sites
around the UK. And a lot of our
retail sites are on– they’re not central
city ones outside of London. They tend to be on A
roads and motorways, so places where you want to
stop when you’re on a journey. So I hope I’ve illustrated a
little bit about how we think about the future, but
also some of the steps we want to take in that journey. Because we see tremendous
opportunity in this, but it’s not just for us. This isn’t just about the
car, it’s about the home and it’s about how it
all integrates together. Thank you. [APPLAUSE]


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