Royal Dutch Shell plc (ADR) (NYSE:RDS.A) has announced its acquisition of NewMotion, a European company that puts up electric vehicle charging networks.
The Dutch energy company announced its decision to go through with the acquisition of NewMotion on Thursday. The announcement is quite exciting because it signifies the fact that fossil fuels are influencing change especially with the rising popularity of electric vehicles. The upcoming acquisition thus marks a positive step towards low emission or zero-emission vehicles.
NewMotion is based in Netherlands and it provides more than 50,000 public electric vehicle-charging points and roughly 30,000 private charging points. Its acquisition by Shell marks the largest buy by a big oil firm in an attempt to shift towards the electric charging vehicle market. However, some other big oil players have also been taking similar steps. French-based Total SA (ADR) (NYSE:TOT) acquired Dutch firm PitPoint that provides EV charging points as well as natural gas refueling.
“We recognize that one of the themes of the energy transition is going to be electrification. As our heritage is fuel supply, the obvious place to start is battery electric vehicles, and that technology is accelerating,” stated Matthew Tipper, the VP of new fuels at Shell.
The acquisition of NewMotion will allow Shell to roll out as many charging stations as it can in its branded service stations all over the world. The acquisition will thus allow the company to evolve to match the changes that are taking place in the energy industry. This will allow the European energy company to remain in business and to continue operating at optimum capacity.
Acquiring NewMotion is also a strategic move for the company. New Motion’s CEO, Sytse Zuidema revealed that 80 percent of electric cars will most likely be charged from home. Charging will also take place at workstations when the vehicles are idle. He pointed out that the core business will focus on turning parking spaces into charging stations. This is expected to work out well for Shell because charging stations will be in many locations and not just at the standard fueling stations.
Royal Dutch Shell stock closed the latest trading session on Thursday at $60.73.