Santos Rosa (Shell Italia): "With clear rules we will invest more"

“For Shell, Italy remains a strategic market . Not only for our long history – over 110 years of activity – but for the role it can play in the European energy system”. This is how João Santos Rosa , CEO of Shell Italia E&P and country chair of Shell in Italy, relaunches the ambitions of the energy giant in the country. An aerospace engineer, 50 years old, with over twenty years of career in the group, the Portuguese manager has held a dual role since February 2024, leading both the exploration and production of hydrocarbons (upstream) and the other business lines (downstream, renewables, trading and storage). “We are working to build an integrated energy portfolio, capable of creating value in the long term”, adds Santos Rosa.

Today, Shell is the main foreign operator in the upstream oil & gas sector in Italy, having co-participated since 2002 in two of the largest continental onshore hydrocarbon projects, built in Basilicata. These are the Val d'Agri field , where the company holds a 39% share alongside Eni (61%), and Tempa Rossa , where the share is 25%, together with TotalEnergies (50%) and Mitsui (25%). “In total, we invest around 500 million euros a year in Italy , although the figure may vary based on market conditions. We would like to do more, but investments often depend on the presence of clear and stable rules ,” explains the CEO. “Every month we have to explain to London why we choose Italy instead of other European countries. This is why it is essential to talk about opportunities, not just critical issues.” Among the enabling factors, Santos Rosa cites “certain authorization times, regulatory clarity, support for national industrial supply chains.”

According to the manager, the country has many cards to play: “A good supply of natural resources, a favorable geographical position, a solid industrial fabric. It is not completely dependent on imports: it can take a proactive role in production and technological development”. “Italy also has a network of dynamic and specialized SMEs, which can contribute to the development of sustainable solutions along the entire value chain”. Shell operates on several fronts. In the petroleum products sector, it serves over 400 direct customers, with 200 service stations, 35 brands and holds a 12% market share. In the gas, electricity and green commodities sectors, it can count on over 1,000 B2B customers, a gas market share of 18% and over 33 TWh sold per year. “We work with energy-intensive companies and industrial partners – he underlines – offering tailor-made solutions and tools for managing flexibility and emissions”.

Since May 2024, Shell has also been a producer of renewable energy , with the start-up of its first photovoltaic plant in Taranto , alongside a second plant already operational and six plants under construction, for a total of 200 MW green. The company has already completed the authorizations for additional 500 MW projects, reaching a total of 700 MW authorized. To manage the intermittency of renewables, Shell has long been investing in domestic storage through Sonnen , a company wholly owned by the group: more than 17,600 storage systems installed in homes and small businesses in six years. “Globally, we allocate 10% of investments to low-emission technologies ,” the CEO emphasizes. “We are committed to industrial decarbonization projects also in view of the development of technologies for the capture and storage of CO2 that could become relevant in the next decade, as done in the Northern Lights project together with partners such as Equinor and TotalEnergies.” However, the manager admits: “No company can do it alone, a public-private coalition is needed to create the right conditions”.

For Shell, oil & gas remains the heart of the business : “Today, 80% of our Italian portfolio is tied to molecules, that is, energy sources such as gas and oil . It is a capital-intensive industry, which requires long horizons and stable conditions to generate returns. Therefore, oil and gas will be needed for decades to come, even in a transition scenario. Thinking that everything can be electrified in the short term is an illusion: pragmatism is needed". In this game, for Santos Rosa, Italy has everything it needs to compete: “Abundant resources underground, even in areas already subject to concessions, human capital, industry, creativity. It is not just a service economy: it is a nation that produces value. If these resources are accompanied by a coherent national strategy and targeted investments, there will be no reason why it cannot play a leading role in the energy transition”. And he concludes: “The conditions to do more are there. It is up to all of us – businesses, institutions, communities – to decide whether to seize them”.