News & Media releases

Shell selected for major new coal gasification opportunity in Australia

17/06/2005

Shell Gas & Power ("Shell") announced today that it has been selected as the preferred coal gasification technology provider for a proposed coal gasification power project in Australia.

Queensland Government owned Stanwell Corporation and Shell have commenced a study for an Integrated (coal) Gasification Combined Cycle (IGCC) power project with carbon dioxide (CO2) sequestration.  The process, which could be the world's first IGCC power generation plant where nearly all of the CO2 generated would be captured and geo-sequestered, would convert coal into synthesis gas, removing CO2 to produce hydrogen rich fuel which can be consumed by turbines to generate electricity.

Shell Gas and Power Executive Vice President, Asia, Peter de Wit, said today: "Shell is proud to be selected as the preferred technology provider for this cutting-edge project.  We initially pioneered our coal gasification process in the Netherlands.  It has since achieved huge success in China where 12 different licenses have been sold over the past two years.  We believe the process offers cleaner energy solutions for Australia's coal industry and boasts impressive greenhouse gas incentives by lowering CO2 emissions."

The project has entered the feasibility study phase where Shell will assist with the preparation of the technical input for the coal gasification plant.  The study is due to complete in October 2005.  Shell would be providing gas-treating technologies in addition to its Shell coal gasification technology.

Notes to Editors

Developed by Shell research, coal gasification is the process by which coal is milled, dried and pulverized into a powder. It is then fed into a gasifier reactor, and at high pressure and temperature, it is converted into synthesis gas (syngas). A small amount of slag left over from the process is used as a component in building material or road paving. The raw syngas is then treated, removing sulphur to its elemental state.  Clean syngas can be used for many applications including power generation, as chemical feedstock, for hydrogen production or further synthesis into ultra clean transportation fuels.

Shell is currently constructing a coal gasification plant in Dongting, China, in a 50/50 joint venture with Chinese energy company, Sinopec.  Shell has also sold a license to the Shenhua Group Corporation, China's largest coal mining group, to manufacture hydrogen for a pioneering coal liquefaction plant in Inner Mongolia.

The Royal Dutch/Shell Group of Companies,  "the Group", is a diverse group of energy companies with operations in around 140 countries. The Group's businesses include oil and gas exploration and production; power generation; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects including wind and solar power. The Group's parent companies are Royal Dutch Petroleum Company which has a 60% interest in the Group and The "Shell" Transport and Trading Company plc which has a 40% interest in the Group. Shares in the parent companies are traded on stock exchanges in Europe and the US.  On 28 October 2004 Royal Dutch Petroleum and Shell Transport and Trading announced proposals for their unification under a single company, Royal Dutch Shell plc, with one Board of Directors. For further information, visit http://www.shell.com.

Disclaimer statement

This announcement contains forward-looking statements, that are subject to risk factors associated with the oil, gas, power, chemicals and renewables business. It is believed that the expectations reflected in these statements are reasonable, but may be affected by a variety of variables which could cause actual results, trends or reserves replacement to differ materially, including, but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risk, risks associated with the identification of suitable potential acquisition properties and targets and the successful negotiation and consummation of transactions, the risk of doing business in developing countries, legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from recategorisation of reserves, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.

Please refer to the Annual Report on Form 20-F for the year ended December 31, 2004 for a description of certain important factors, risks and uncertainties that may affect the Companies' businesses.  Neither of the Companies undertake any obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or otherwise.

Cautionary Note to US Investors:

The United States Securities and Exchange Commission ('SEC') permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions.  We use certain terms in this presentation, such as "expected producible resources" and "amount of reserves we expect to produce", that the SEC's guidelines strictly prohibit us from including in filings with the SEC.

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