Shell, Penske Collaborate on Emission-Reduction Plan
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Shell Oil Co. and Penske Corp. are collaborating to help drive decarbonization and sustainability, the companies announced May 28.
The partnership will aim to offer customers an integrated solution to help address emissions across multiple touchpoints in their supply chains. That includes warehouse facilities, vehicle and fleet technologies, and sustainable transportation routes.
“Penske is one of these partners that we started a relationship with more than a decade ago and one that we believe is absolutely critical to the agenda of decarbonizing road transport,” Daniel Silva, vice president of global enterprise accounts for sectors and decarbonization at Shell, told Transport Topics. “The one thing that I can tell you about decarbonization is that it’s highly complex because it’s something that nobody can do alone.”
Silva
Shell has previously helped to deliver energy savings at Penske Automotive Group dealer sites and is providing fast chargers to help pilot fully electric heavy-duty trucks. Penske Logistics has helped provide substantial optimization benefits in Shell’s lubricants supply chain through fourth-party logistics services. This new collaboration initially will be focused on the U.S.
“We are also working with the Penske Logistics side of the house to provide infrastructure for electric vehicles and electric trucks,” Silva said. “So charging points and routes that enable that truck to actually run affordably and also have high expectation that you actually will be covered infrastructure-wise.
“So some of those things are quite tangible examples of what we do together already. And we want to take this to the next level. We want to bundle more of those elements.”
NEWS: @Shell and @PenskeNews announce strategic collaboration to help drive decarbonization and sustainability across sectors.
https://t.co/rctaVCItXX pic.twitter.com/OYNHhpSKZS — Team Penske (@Team_Penske) May 28, 2021
Silva added that rather than look at different business operations in isolations such as energy management, the goal is to take a much broader approach that encompasses everything across the supply chain from warehouse assets to the trucks moving goods.
“When you talk about decarbonization, there are three main angles, which are avoiding emissions in the first place, reducing emissions where you cannot avoid and then offsetting the remaining balance,” Silva said. “So that’s kind of a golden rule for us. It starts in that order. We will always first try to avoid, only then do we reduce and then we offset.”
We are also working with the Penske Logistics side of the house to provide infrastructure for electric vehicles and electric trucks.
Daniel Silva, Shell vice president of global enterprise accounts for sectors and decarbonization
Silva added after figuring that out the question becomes where that agenda could be relevant to partners. He noted mapping out steps throughout the transportation process can provide insights into where there are good opportunities to decarbonize.
“I think what’s different about this partnership is not what we can do with each other,” Silva said. “I think we have been doing that pretty well for 10 years and more. But how altogether we can do meaningful things with others.”
He added that one way in which that could be done is digitization to achieve better monitoring of operations. Silva noted that would be one of the areas where Penske can be important given its technology and telematic solutions. The Shell Energy Transition Strategy also was launched April 15 to monitor emissions from its supply chain partners. Shell Energy Inside is another service that provides energy management solutions.
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“Over 10 years ago, Shell and Penske Corp. Team Penske began a business-to-business, technical and motorsports collaboration,” Penske CEO Roger Penske said in a statement. “Now, by combining Shell’s energy solutions with Penske Logistics and technology expertise, the companies aim to help customers achieve their sustainability goals faster and at a lower cost.”
Shell and Team Penske also are aiming to reduce the carbon footprint of the NTT IndyCar Series. Penske already has made several upgrades to facilities to reduce the overall carbon footprint since acquiring Indianapolis Motor Speedway in January 2020. But now, Pennzoil-Quaker State Co., a subsidiary of Shell Oil Co., and Penske are working together to reduce the carbon footprint of the race facility and working with the Council for Responsible Sport to certify events.
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