Shell to create one among Europe’s biggest biofuels facilities

Shell to create one among Europe’s biggest biofuels facilities

The new facility will help Netherlands and therefore the remainder of Europe to satisfy internationally binding emissions reduction targets. it’ll also help Shell to satisfy its own target of becoming a net-zero emissions energy business by 2050, in step with society’s progress towards achieving the climate goals of the Paris Agreement. Advanced production methods are going to be wont to make the fuels. the power is predicted to use technology to capture carbon emissions from the manufacturing process and store them in an empty gas field beneath the North Sea through the Porthos project. A final investment decision for is predicted next year.

“Today’s announcement may be a key a part of the transformation of 1 of our major refineries into an energy and chemicals park, which can supply customers with the low-carbon products they need and wish ,” said Huibert Vigeveno, Shell’s Downstream Director.

As a part of its Powering Progress strategy, Shell is transforming its refineries (which numbered 14 in October 2020) into five energy and chemicals parks. Shell aims to scale back the assembly of traditional fuels by 55% by 2030 and supply more low-carbon fuels like biofuels for road transport and aviation, and hydrogen. The Energy and Chemicals Park Rotterdam is that the second park to be announced, following the launch in July of the Energy and Chemicals Park Rheinland, in Germany.

The Rotterdam biofuels facility is predicted to start out production in 2024. it’ll produce low-carbon fuels like renewable diesel from waste within the sort of used vegetable oil , waste fat and other industrial and agricultural residual products, using advanced technology developed by Shell.

A range of certified sustainable vegetable oils, like rapeseed, will supplement the waste feedstocks until even more sustainable advanced feedstocks are widely available. the power won’t use virgin vegetable oil as feedstock.

Sustainable aviation fuel (SAF) could structure quite half the 820,000-tonnes-a-year capacity, with the remainder being renewable diesel. Shell can adjust this mix to satisfy customer demand.

These low-carbon fuels will help to satisfy growing demand from the transport sector, including hard-to-decarbonise sectors like heavy road transport and aviation. SAF currently accounts for around 0.1% of worldwide aviation fuel. Shell’s investment will help increase SAF production, which is significant if aviation is to chop carbon emissions.

Marjan van Loon, President Director of Shell Netherlands BV said: “Shell has been on the road to a lower-carbon future for a few time. This investment is a crucial step as we transform the Energy and Chemicals Park Rotterdam from a standard refinery into a sustainable energy park. The project will mean many many dollars of investment annually during construction, it’ll create many jobs, and help to take care of the facility’s competitiveness for years to return .”

Notes to editors

This announcement marks another step within the transformation of the previous Pernis refinery into an energy and chemicals park. It complements Shell’s plans to create a 200-megawatt hydrogen within the Port of Rotterdam, and therefore the planned Porthos CCS project, both of which could help to decarbonise operations at Pernis significantly. When built, Porthos will transport and store CO2 that’s captured by various companies, including Shell. The project aims to capture up to 2.5 million tonnes of CO2 a year from 2024 and will make a big contribution to meeting the Dutch climate ambitions.
Shell is functioning with partners to make a green hydrogen hub within the Port of Rotterdam. In July 2020, Shell and Noord offshore wind project within the North Sea . This renewable power are often wont to produce green hydrogen at the planned 200 MW , which is meant to start out operations by 2023 to supply about 50,000 – 60,000 kg of hydrogen each day .
Advanced production methods use bio-naphtha and lightweight hydrocarbon gasses created during the formation process to make hydrogen. Hydrogen and high-pressure steam are then utilized in the assembly process to convert oils into fuels , helping to scale back the fuel’s carbon intensity.
Cautionary note
The companies during which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. during this announcement “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries generally . Likewise, the words “we”, “us” and “our” also are wont to ask Royal Dutch Shell plc and its subsidiaries generally or to those that work for them. These terms also are used where no useful purpose is served by identifying the actual entity or entities. “Subsidiaries”, “Shell subsidiaries” and “Shell companies” as utilized in this announcement ask entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally mentioned as “joint ventures” and “joint operations”, respectively. Entities over which Shell has significant influence but neither control nor joint control are mentioned as “associates”. The term “Shell interest” is employed for convenience to point the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

This announcement contains the subsequent forward-looking Non-GAAP measure: Adjusted Earnings. We are unable to supply a reconciliation of those forward-looking Non-GAAP measures to the foremost comparable GAAP financial measures because certain information needed to reconcile the above Non-GAAP measure to the foremost comparable GAAP financial measure depends on future events some which are outside the control of the corporate , like oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the specified precision necessary to supply a meaningful reconciliation is extremely difficult and will not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which can’t be reconciled to the foremost comparable GAAP financial measure are calculated during a manner which is according to the accounting policies applied in Royal Dutch Shell plc’s consolidated financial statements.