Shell builds biofuel factory in Pernis

Oil and gas company Shell announced on Thursday the construction of a biofuels factory in the Rotterdam port area. The plant on the site of its refinery in Pernis will have an annual production capacity of 820,000 tons of more sustainable fuels. More than half of this will consist of the sustainable aviation fuel SAF (sustainable aviation fuel) and the rest of renewable diesel from residual waste, such as animal fats, frying fat and plant residues. The plant is expected to cost Shell “hundreds of millions of dollars” in investment in the coming years and should be operational by 2024.

Also read this analysis: How will Shell limit emissions in the future?

Shell expects the factory to reduce CO₂ emissions by 2.8 million tons per year. According to the company, this is comparable to the emissions of one million medium-sized diesel cars in Europe. This should be done, among other things, by capturing the carbon emissions during the production process and then storing them as part of the so-called Porthos project. In this initiative by Shell, the French Air Liquide and the American companies ExxonMobil and Air Products, the multinationals want to capture CO₂ from 2024 and transport it by pipeline to empty gas fields in the North Sea. A decision is expected to be made at the beginning of 2022 whether the project has received sufficient investments to proceed.

Reducing number of refineries

With the new factory, Shell says it wants to help meet the growing demand from the transport sector for more sustainable fuels. According to the oil and gas company, about 0.1 percent of global jet fuel now consists of SAF. Shell’s investment will help increase SAF production, which is vital if aviation is to reduce CO₂ emissions. According to Shell director Huibert Vigeveno, who is responsible for all refineries, among other things, the largest refinery in Europe in Pernis must eventually be transformed into a ‘sustainable energy and chemical park’. Worldwide, Shell wants to reduce its fourteen refineries to five such parks. In Pernis, the company claims to process 404,000 barrels of crude oil per day, which amounts to 20 million tons per year.

Also read: Shell to supply green energy to Dutch households

The multinational was forced by a Dutch court in May to reduce its greenhouse gases more quickly in order to comply with the Paris Climate Agreement. This groundbreaking statement means that Shell has to step up its own strategy for reducing greenhouse gases. The company announced in July that it would appeal because a “ruling against one company is ineffective”.

Shell is not the first company to build a biofuel factory in the Rotterdam port area. In March, the Finnish energy and chemical group Neste, the world’s largest producer of renewable diesel, announced the construction of a new biofuel plant in Rotterdam. That factory, with a planned investment of an estimated 1.5 billion euros, should be a bit bigger than the new Shell factory and, according to Neste, will save approximately 3.5 million tons of CO₂ emissions per year. Neste produces around one and a half billion liters of renewable diesel in Rotterdam every year.

Shell builds biofuel factory in Pernis
Source link Shell builds biofuel factory in Pernis

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