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Shell Energy eyes UK power market

Oil giant to supply industrial customers in effort to 'grow power footprint'

Shell Energy Europe intends to “grow its footprint in Europe’s power market” by selling power to UK business customers.

The oil giant has applied to Ofgem for a licence to sell directly to industrial end users within Great Britain.

“The decision to offer power supply directly to end users in Great Britain’s industrial and commercial sector reinforces our strategy to boost our position in Europe’s electricity market,” said Jonathan McCloy, Shell’s general manager for north west Europe.

“In addition to supplying Shell’s assets in Great Britain, we intend to supply power to other large industrial complexes from early next year,” he continued.

Shell Energy Europe already operates in 14 European power markets, including Germany, Italy and Turkey.

It is also active in power trading and wholesale markets in the UK and provides wholesale gas and power to existing independent energy retail counterparties.

It does not generate any power but purchases it from a range of sources, some of which are renewable.

No deals have been made yet, but Shell is “ready to talk to a wider customer base as a result of this new licence,” according to a spokesperson.