Shanghai (ZXZC)- Shell (China) Limited ("Shell China"), the China branch of the world's leading lubricant supplier Shell, on Feb. 23 signed a letter of intent with Alibaba Cloud, a cloud computing and AI company backed by Alibaba Group, to forge a long-term strategic partnership, according to a post on Shell China’s WeChat account.

Through the cooperation, Shell will provide low-carbon energy products and solutions for Alibaba to help the latter reduce carbon emissions in its infrastructures. The two parties will conduct tests on Shell's coolant applied to the liquid cooling system of Alibaba’s data center, explore commercial cooperation opportunities, and plan to promote Shell's electric vehicle (EV) charging services to Alibaba's ecosystem and partners.

Photo credit: Shell

Alibaba Cloud will leverage its technical advantages in computing, data storage, networking, cybersecurity, big data, and AI to help Shell China optimize and upgrade digital infrastructures, and facilitate the innovation for Shell through Alibaba's business and data middle platforms built for new retail and e-commerce businesses.

Shell will optimize its business operations and customer experience through the collaboration with Alibaba's ecosystem platforms. To be specific, it will team up with Cainiao, Taobao, and Amap to assist Shell's digital transformation as a comprehensive energy service provider for mobility, and help it improve the efficiency of site selection, operations, and marketing.

Regarding the cooperation in low-carbon business, both parties will leverage their respective resources and technology advantages to build intelligent and efficient digital factories, and jointly explore green and low-carbon digital solutions for enterprise customers to increase the "green" competitiveness of related products.

In addition, the duo will explore the possibility of electricity trading, renewable energy certificate trading, and carbon credit trading in China.

Furthermore, the two companies will conduct feasibility studies on the digitalization and intelligence of carbon capture, utilization, and storage (CCUS), and explore the construction of CCUS carbon accounting and evaluation standards based on digital trust technology, to achieve intelligent management for the entire CCUS technology chain.

What’s more, Shell and Alibaba Cloud will explore the possibility of power, green certificate, and carbon credit trading outside of China, and will investigate the latest developments of new energy sources such as sustainable aviation fuel, hydrogen, renewable diesel, and other low-carbon fuels.