Simple can be harder than complex: how hard-to-electrify sectors invigorate innovation and drive opportunity

“Focus and simplicity" or as Steve Jobs once said: "Simple can be harder than complex: you have to work hard to get your thinking clean to make it simple. But it's worth it in the end because once you get there, you can move mountains." This is a critical insight and applicable to a wide number of challenges.

However, in the context of our work here at Shell, the path to delivering Low Carbon Solutions that help our customers on their emissions reduction journey is far from simple and straightforward. After all, the transition to lower carbon energy is extremely complex by its very nature. Modern energy systems are multi-layered, interconnected, have grown over decades and are deeply ingrained in every aspect of our modern world.

This complexity demands urgency, caution, and nuance all at the same time. While we understand the array of cleaner energy options available, our true challenge lies in efficiently commercialising and scaling these solutions. It's not just about knowing what to do – it's about solving the crucial question of 'how'.

And sorry, no silver bullets or easy solutions…

There simply are no silver bullet solutions that transform energy systems into cleaner ecosystems overnight. To change energy systems takes time, and every industry, every region, every company is likely to need a tailored approach, as whilst being a global need, the energy transition remains local in nature. Yet, even in this complex landscape, I've found that striving for focus and simplicity does make sense and can guide our approach after all. In fact, these principles have become central to how we aim to tackle the challenge.

Focus: We at Shell are absolutely focused on developing lower carbon solutions - by playing to our areas of strength, by making sure we unlock demand, and by aligning what’s possible with and within the regulations and targets set by governments as they aim to deliver net zero. It is focus today, to deliver tomorrow’s progress.

Simplicity: At the same time we are all about creating simplicity – by helping our customers to look beyond what may seem like insurmountable challenges, and by supporting them to chart a clear and phased path for their emissions reduction journey, with tailored lower carbon solutions that meet their needs over time.

The secret of focus and simplicity? Solve, unlock and scale!

Just like the shift to cleaner energy is a process, so are focus and simplicity. First, we solve the problem, whether that’s a scientific, technical or system challenge. Next, we unlock value, by helping customers identify solutions that are efficient, support them towards their lower carbon targets and provide the right return on investment to be commercially viable. Finally, we scale these lower carbon solutions, with innovative products and services, by corralling market demand, and by building the supply chains that help deliver this low and no-carbon future.

Let me give you two examples of what this looks like in real life.

Low-carbon flying, simplified

Aviation is one of the world’s hardest-to-electrify sectors. Demand for planes that travel long distances and carry heavy loads is growing, and they need high-energy fuels to do that. The best solution available today is Sustainable Aviation Fuel (SAF)[1]. The International Air Transport Association (IATA) estimates that SAF could contribute around 65% emissions reduction for the aviation industry. The problem: SAF accounts for just 0.2% of all aviation fuels currently used. It’s also twice as expensive as conventional jet fuel.

We focused on tackling both the limited supply of SAF and its higher cost by developing a solution called Avelia. Working in collaboration with Accenture, American Express Global Business Travel, with support from the Energy Web Foundation, we have created a blockchain-powered ‘book and claim’ solution that brings together airlines, cargo players, SAF suppliers and business travellers in a new ecosystem to share the benefits and costs of SAF adoption. Already, more than 30 airlines and companies have joined Avelia. By proving the commercial viability of SAF, this partnership is accelerating the demand needed for scaling up investment, production and infrastructure.

From Quest to Polaris and beyond

Let me give you a second example that shows how our focus today delivers tomorrow’s progress. One of the world’s options available today to reduce carbon emissions is carbon capture and storage (CCS), a technology that captures carbon emissions and then stores the carbon safely away in the ground. Frankly speaking, CCS at scale is not an easy task and requires technology know-how, the right economic conditions and commercial business models.

Our focus has made us industry pioneers. For example in Alberta, Canada, we started with a project called Quest. The facility has been operating safely and reliably since 2015, and stored 9 million tonnes of CO2 so far. The real challenge of CCS, however, is to deliver scale, and we are doing exactly that. At Scotford – also in Alberta – our new Polaris CCS project will soon capture 650,000 tonnes of CO2 a year from our refinery and chemical plant, and we are using the CCS technology to reduce our own emissions as well. And as we continue to prove the technology and simplify the complexities in this novel space, we can then work over time on scaling CCS in Alberta and elsewhere to make this a viable industry solution for our customers.

Tomorrow is today’s job

The transition to lower carbon energy poses some big challenges, but the fundamental mindset – focus and simplicity – applies just the same. It's what all my teams across Shell Low Carbon Solutions aim to practice every day. We are not daunted by the challenge; instead, we are guided by these principles to power progress and deliver a balanced energy transition. At Shell Low Carbon Solutions, we recognise that tomorrow is today's job, and we're committed to making more and cleaner energy choices a reality.

[1] SAF is an internationally recognised term used by IATA and the aviation industry to describe a non-conventional (fossil-derived) aviation fuel.  Shell uses the term SAF to remain consistent with the industry.