THE status quo in the global transport sector is not sustainable, Royal Dutch Shell's chief executive Jeroen van der Veer has warned.
Emerging energy sources for transport must be cheap, clean and convenient, he said, speaking to reporters at the Shell Eco-marathon on Thursday.
Given that any overhaul of the transport sector will take decades, it is even more important to increase energy efficiency and reduce greenhouse gas emissions from vehicles today, he added.
Shell predicts that by 2050, the world's vehicle population will double to two billion.
'Electric mobility, of course, is the talk of the town today. We believe that the number of plug-in hybrids, full- electric vehicles and hydrogen fuel cell vehicles is set to grow in the coming decades,' said Mr van der Veer.
'Shell is relaxed about that,' he added. 'I can imagine a future in which Shell stations offer to service and replace batteries alongside petrol.'
But petrol and diesel are likely to remain dominant fuels, he added.
Until 2025, substantial energy efficiency and carbon emission gains could be made by improving vehicles and fuel performance and Shell is committed to achieving this, he said.
Shell is also involved in carbon capture and storage (CCS) projects where carbon emissions are captured and stored underground. But such technologies require the imposition of a price on carbon, he said.
Pricing methods such as a carbon tax or a cap-and-trade system where companies have to pay to pollute can co-exist, although the latter seems to have worked better, he added.
On renewable energy, Shell said it hopes to become a major player in at least one form of clean energy - and this is beginning to look like biofuels.
The firm is stepping up its efforts and investments over the next two years to grow biofuels into a commercial-size renewables business, and will be investing in next generation, sustainable biofuels, he said.
'If you want to be in all forms of energy, you'll be spreading your knowhow and bets too thin. Then you are not good in everything...and will be outdone by companies which make clear choices, said Mr van der Veer.
'So at Shell, we also have to make these choices.'
