Shell's Hydrogen Exit In California Deals A Major Blow To State's Green Mobility Drive
Portfolio Pulse from Benzinga Neuro
Shell (NYSE:SHEL) announced the closure of its hydrogen light-duty passenger fueling stations in California due to supply chain issues and external market factors. This decision, which includes the permanent closure of seven stations, reduces California's hydrogen fueling options by 12% and marks a significant setback for the state's green mobility initiatives. Shell's move aligns with its broader strategy to scale down low-carbon operations, including a 15% workforce reduction in its low-carbon solutions division and the sale of its share in the Schwedt refinery.
February 12, 2024 | 11:12 am
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Shell's decision to exit the hydrogen fueling station market in California reflects a strategic shift towards scaling down its low-carbon operations, including a workforce reduction and divestment from the hydrogen business.
Shell's exit from the hydrogen fueling station market in California is a direct action that aligns with its broader strategy to reduce its low-carbon operations footprint. This move could negatively impact investor perception of Shell's commitment to green energy solutions, potentially affecting its stock price in the short term. The closure of these stations also reflects challenges in the hydrogen fuel market, which could influence investor confidence in the sector.
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