Oil supermajor, Shell is scaling back investments in some of its renewable energy divisions in a drive to boost profits.

In an overhaul, it will cut 15% of jobs in the low-carbon solutions unit and sharply reduce its hydrogen business operations.

Wael Sawan, CEO, who took over in January, vowed to revamp the firm's strategy to focus on higher-margin projects and boost profits, steady oil output and grow natural gas production.

With the major changes taking place in its hydrogen business, Shell confirmed to Reuters that it will cut 200 jobs in 2024 and placed a further 130 under review, as part of a drive to reduce the headcount in the 1,300-strong division.

Shell said it plans to sharply scale back its hydrogen 'light mobility operations', which develops technologies for light passenger vehicles.

Shell was one of the early backers of hydrogen-fuelled cars. But it has in recent years closed several hydrogen fuelling stations, even in Britain, as consumers have opted for electric vehicles instead.

Sawan said that Shell is changing its "pathway" towards meeting its ambition to become a net zero carbon emitting company by 2050.

The company stated: "We are transforming our Low Carbon Solutions (LCS) business to strengthen its delivery on our core low-carbon business areas such as transport and industry."

The LCS operations include hydrogen and other businesses looking at decarbonizing the transport and industry sectors but do not include the renewable power business.

"We are transforming our Low Carbon Solutions (LCS) business to strengthen its delivery on our core low-carbon business areas such as transport and industry," the company added.

The division also includes Shell's carbon capture and storage and nature-based solutions businesses, which will not be impacted by the current round of cuts, the sources said.

It will also merge two of four general manager roles in the hydrogen business, Shell said.

Source: Reuters.