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Shell for the Future: Sustainable Water Management Solutions as a Catalyst for Economic and Community Development

Shell, in collaboration with GIZ and local farmer groups, has initiated a project for sustainable water and agricultural management using solar energy. This initiative aims to improve water management efficiency in Northeast Thailand, enhance the capabilities of farmers, produce clean drinking water, and increase agricultural yields – ultimately improving quality of life in the community.

Lower rice production costs have led to higher earnings for farmers.
Lower rice production costs have led to higher earnings for farmers.
Partnering with key stakeholders to collaboratively support economic growth in the community.
Partnering with key stakeholders to collaboratively support economic growth in the community.
Increasing the capacity to produce and distribute rice varieties from community rice mills.
Increasing the capacity to produce and distribute rice varieties from community rice mills.

“Sustainable Water Management through Solar Energy, Promoting Community Quality of Life” is the concept that Shell has brought to power life in Roi Et Province. With water management being a key challenge to the community's economic stability, clean energy – which is gaining traction across all sectors – has become a vital tool for developing a sustainable and improved quality of life. Shell, a global leader in energy, has partnered with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in Thailand, Thung Luang Subdistrict Municipality, and local community enterprises in Roi Et Province to initiate the “Shell Water Resource Management” project to address water resource management, which is foundational to the community’s economic challenges, by utilising solar energy as a mechanism to drive long-term sustainable development in the community.

Ornuthai Na Chiangmai, Country Chair, The Shell Company of Thailand Limited.
Ornuthai Na Chiangmai, Country Chair, The Shell Company of Thailand Limited.

Ms. Ornuthai Na Chiangmai, Country Chair of The Shell Company of Thailand Limited, said, “At Shell, sustainable business operations are our key goal and driving force. We are transforming our processes to support this vision, enhancing people’s quality of life (Powering Lives) through impactful social investments. Our aim is to create positive social impacts, enhance community living standards, empower society to address challenges sustainably, and advance lasting sustainable changes.”

A clean-energy powered drinking water dispenser provides the surrounding community with broad access to safe drinking water.
A clean-energy powered drinking water dispenser provides the surrounding community with broad access to safe drinking water.
Improving water management efficiency through clean energy to promote a sustainable quality of life.
Improving water management efficiency through clean energy to promote a sustainable quality of life.
A learning center for the development of efficient rice production practices.
A learning center for the development of efficient rice production practices.

The “Shell Water Resource Management” project is a collaborative effort between Shell and its partners to develop a comprehensive water management system and enhance sustainable agricultural practices, thereby boosting local economic growth. This initiative tackles water shortages in Northeast Thailand by enhancing irrigation systems with solar energy technology and producing clean drinking water for widespread community distribution. To ensure the project’s sustainability, a dedicated community committee has been established to oversee the water system and its distribution benefits. Comprehensive training programmes on solar energy, system maintenance, and efficient resource usage are provided. The project also focuses on promoting sustainable agriculture by enhancing the skills of farmers, youth, and communities.

Clear benefits include a reliable water supply for households and agriculture, reduced drinking water costs, and increased agricultural productivity through continuous access to water, promoting long-term water security. Additionally, the project serves as a knowledge hub for sustainable water management for youth and farmers, empowering the community to independently manage the system and further building a robust economic foundation. This initiative aligns with the Sustainable Development Goals (SDGs), notably in advancing sustainable water management.

Advancing from irrigation system development to comprehensive water management solutions.
Advancing from irrigation system development to comprehensive water management solutions.
Enhancing quality of life with an accessible clean water system for the community.
Enhancing quality of life with an accessible clean water system for the community.
Improving the skills and learning capabilities of farmers.
Improving the skills and learning capabilities of farmers.

Shell is leveraging its energy expertise to enhance water management efficiency and promote sustainable agriculture, positively impacting the livelihoods of over 3,390 individuals across three key locations. In Ban Ta Yuak School, the solar-powered water pumping irrigation system now provides sufficient water for both agricultural and community needs, benefiting over 1,300 farmers, students, and parents. This initiative promotes local food security by enabling the cultivation of alternative economic crops. This location serves as an innovative learning platform for the community and a hub for sustainable agricultural practices within the farmer network, particularly focusing on solar irrigation. In Ban Phon Duea, a solar-powered groundwater pumping system and water dispensers produce 1,200 litres of high-quality drinking water daily, saving the community 155,596 baht in just four months. The villagers have also expanded their efforts by establishing a community drinking water enterprise which generates income through sales to nearby communities.

Strengthening agricultural stability through sustainable water management systems.
Strengthening agricultural stability through sustainable water management systems.
Promoting community economic growth through sustainable water resource management.
Promoting community economic growth through sustainable water resource management.
Strong communities drive sustainable economic growth.
Strong communities drive sustainable economic growth.

In Ban Non Sawan, the community rice mill is not just reducing energy costs and consumption for local rice farmers; it is a thriving community learning centre for sustainable rice farming. This project has empowered the community enterprise to significantly improve productivity and efficiency. It supports their mission to distribute high-quality rice varieties, promote environmental conservation, and preserve the ecosystem of the area’s rice fields. The project’s success is a testament of the strong collaboration between local agencies, educational institutions, and the community’s commitment to harness clean energy to significantly enhance quality of life. Through skill development and knowledge sharing, the community has also embraced sustainable improvements in livelihoods.

Dr Nana Kuenkel, Coordinator of Agriculture and Food Cluster, GIZ Thailand
Dr Nana Kuenkel, Coordinator of Agriculture and Food Cluster, GIZ Thailand

Dr. Nana Kuenkel, Coordinator of Agriculture and Food Cluster, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Thailand, said, “This project, which promotes sustainable agriculture through solar energy, has empowered communities to develop sustainable irrigation systems and farmland management, while increasing access to clean and high-quality water for consumption. The sustainable agriculture training conducted over the past two years has already had tangible impacts on the community. We will now seek opportunities to support marketing initiatives to further enhance the potential of communities and community enterprises in water management.”

Wilak Phulthekong, Project Coordinator with Shell Water Resource Management.
Wilak Phulthekong, Project Coordinator with Shell Water Resource Management.

“This project not only enhances the quality of life of community members but also transforms the area into a learning centre. It provides youth and community members with opportunities to learn about sustainable agriculture and water management using clean energy. Students benefit by growing vegetables at school, ensuring year-round access to fresh produce, reducing household expenses and promoting good nutrition,” said Mr. Wilak Phulthekong, the Project Coordinator. “By managing the irrigation system and using solar energy to pump water from underground sources, farmers can cultivate crops year-round without being dependent on seasonal changes, thereby reducing electricity and rice milling costs while increasing production capacity. This enables the community to compete more effectively in the market. This project, therefore, serves as both a source of knowledge and sustainable resources, creating value for the community and enhancing quality of life.”

Community rice mill optimizes costs with solar power integration.
Community rice mill optimizes costs with solar power integration.
Sharing expertise to enhance quality of life in the community.
Sharing expertise to enhance quality of life in the community.
An effective water management system ensures clean and safe drinking water.
An effective water management system ensures clean and safe drinking water.

“Shell has long been a partner in Thailand’s growth, leveraging its expertise in innovation to enhance the quality of life of communities. This water management project, powered by solar panels, helps reduce costs, increase rice yields, and supply clean water for both consumption and agriculture. Additionally, the area serves as a community learning centre. Despite facing challenges, the unwavering collaboration and commitment from community farmers and locals have ensured the project’s smooth and successful progression. As a global energy company evolving alongside Thai society, we are driven to create tangible and sustainable change for Thailand,” concluded Ms. Ornuthai.

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Cautionary Note

The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this announcement “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. “Subsidiaries”, “Shell subsidiaries” and “Shell companies” as used in this announcement refer to entities over which Shell plc either directly or indirectly has control. The term “joint venture”, “joint operations”, “joint arrangements”, and “associates” may also be used to refer to a commercial arrangement in which Shell has a direct or indirect ownership interest with one or more parties. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

Forward-Looking Statements

This announcement contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition”, “anticipate”, “believe”, “could”, “estimate”, “expect”, “goals”, “intend”, “may”, “milestones”, “objectives”, “outlook”, “plan”, “probably”, “project”, “risks”, “schedule”, “seek”, “should”, “target”, “will” and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak, regional conflicts, such as Russia’s invasion of Ukraine, and a significant cybersecurity breach; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Shell plc’s Form 20-F for the year ended December 31, 2023 (available at www.shell.com/investors/news-and-filings/sec-filings.html and www.sec.gov) These risk factors also expressly qualify all forward-looking statements contained in this announcement and should be considered by the reader. Each forward-looking statement speaks only as of the date of this announcement, 29 November 2024. Neither Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this announcement.

Shell’s Net Carbon Intensity

Also, in this announcement we may refer to Shell’s “net carbon intensity”, which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “net carbon intensity” is for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s Net-Zero Emissions Target

Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and Net Carbon Intensity (NCI) targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target, as this target is currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.

Forward-Looking Non-GAAP measures

This announcement may contain certain forward-looking non-GAAP measures such as cash capital expenditure and divestments. We are unable to provide a reconciliation of these forward-looking non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of Shell, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements.
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