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General Motors (GM), Shell Join Forces for Renewable Energy Products

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  • RDS-B
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General Motors GM recently entered into a partnership with Royal Dutch Shell RDS.A-owned subsidiary — MP2 Energy, LLC — for providing its Texas customers and supply-chain partners with fixed-rate comprehensive renewable energy plans and other incentives designed to make owning an electric vehicle (EV) convenient and more affordable.

Through this program, owners of EVs from General Motor brands can pick a home energy plan with Shell that will incorporate the option for free overnight hours of EV charging. This residential energy solution program will also include fixed-rate home energy plans, backed by 100% renewable energy, giving EV owners the satisfaction that their cars are being charged by environmental-friendly means.

Currently, this home-energy plan is available only for owners of Chevrolet, Buick, GMC and Cadillac vehicles in Texas. In the days to come, both companies plan to magnify the residential and EV offerings across other U.S. markets.

Additionally, the two companies will provide General Motors’ suppliers access to a customized array of renewable energy products to help them achieve their individual emissions-reduction targets. The automaker failed to disclose what these renewable energy products might encompass.

Amid the heightening climate-change concerns, investors are intrigued by automakers that provide green transportation solutions. A shift toward electric future has made it necessary for industry players to reorient their business model and accelerate the EV game. Within the transforming auto industry, companies like Ford Motor Company F and Volkswagen VWAGY are taking considerable strides to provide transportation with zero emissions.

General Motors is also committed to its goal of providing completely carbon-free transportation in the upcoming years and is boosting its electrification efforts to attain the target. The company has always been at the forefront of the automotive revolution and is focused on its vision of an all-electric future. The Detroit-based auto giant plans make its entire fleet carbon neutral by 2040, and has committed to targets that are in sync with the most ambitious goals of the Paris Agreement.

Recently, the automaker committed to invest $35 billion to EVs and autonomous vehicles by the end of 2025, which is a 75% increase from its initial $20-billion plan. The company is also pulling forward construction of two U.S-based Ultium battery cell plants. These plants are in addition to the battery cell facilities currently under construction in Tennessee and Ohio.

Meanwhile, oil giant Shell has vowed to become a net-zero emissions energy business by 2050. This target includes emissions not only from the energy Shell produces and processes, but also from all the energy products it retails to its customers. Shell wants to expand its renewables, biofuels, and hydrogen businesses, and is shifting its long-term focus from oil and gas to selling renewable energy, partly by taking stakes in renewable energy projects.

This partnership showcases how two companies — one a giant oil producer, the other a manufacturer of oil-consuming products — can jointly achieve their corporate emission goals.

Both companies are optimistic about working together to provide products for consumers and businesses focused on reducing their emission impact. These products will not only ensure that EV owners are charging their vehicles from eco-friendly power sources, but will also likely reduce the amount of money they spend on charging their EVs at homes, thus making owning an EV more cost-effective.

General Motors currently flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of General Motors have appreciated 44.4% year to date, while the industry witnessed a fall of 3.7%.

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