Press Release

--Cost-Effective Alternative Fuel Reduces Regulated Emissions--

HOUSTON (Oct. 26, 2004)— Shell announced the results of a yearlong Gas to Liquids (GTL) fuel trial involving six trucks operating on conventional engines provided by California-based bottled water distributor, Yosemite Waters. 

The results of the trial, which scientifically demonstrated the robust operability of the combination of fuel and exhaust systems and a significant reduction in emissions, will also be presented today at the Society of Automotive Engineering Conference in Tampa, Florida, by one of the industrial partners with which Shell has collaborated.

The results show that GTL Fuel reduced all regulated emissions, with a cut in oxides of nitrogen (NOx) and particulate matter (PM) emissions by 16 percent and 23 percent respectively during a New York City Bus drive (NYCB) cycle without a particulate filter.  The NYCB cycle is a standard set of simulated driving conditions used by researchers to test emissions.  With a Catalyzed Diesel Particulate Filter, NOx and PM emissions were further reduced, with overall reductions of 20 percent and 97 percent respectively.

GTL Fuel, a unique colorless and odorless synthetic fuel made from natural gas, with virtually no sulfur and aromatics is expected to play a key role in the transition to renewable fuels and advanced engine designs.

 “These trial results provide important data to legislators, commercial users and the public and will allow them to make better decisions about air quality,” said Jack Jacometti, VP global GTL development.  “Based on our experience in GTL Fuel trials across the globe, this fuel is increasingly seen as the most cost-effective alternative fuel for reducing emissions in transport.”

Shell is also currently working on a six-month road trial involving heavy-duty trucks with Ralphs Groceries stores in Southern California.  This trial, expected to conclude in February 2005, will compare two trucks operating on GTL Fuel against two trucks operating on standard CARB diesel. 

Government agencies and industrial partners joined together in both trials in an effort to research ways to improve air quality in Southern California.  The National Renewable Energy Laboratory (NREL), the South Coast Air Quality Management District (SCAQMD) and California Energy Commission (CEC) were among the organizations supporting the Yosemite Waters and Ralphs Groceries trials.  GTL Fuel, which can be blended with conventional diesel and used in today’s diesel engine vehicles without modifications, offers governments a strategic diversification of energy supply.

Shell GTL Fuel has successfully demonstrated a reduction in emissions and improved performance in trials involving passenger cars in Germany and heavy-duty trucks in Japan and now, in California.  Recently, a Shell GTL Fuel blend was launched in a bus trial in Shanghai, China.  Blends of GTL Fuel are currently being sold at Shell retail stations under the V-Power Diesel brand in Germany and The Netherlands, as Pura Diesel in Thailand and Shell Diesel 2004 in Greece.

The companies in which the Royal Dutch Petroleum Company and the Shell Transport and Trading Company. p.l.c. directly or indirectly own investments are separate and distinct entities.  In this release, the expression “Shell” is used to refer to the individual company or companies of the Royal Dutch/Shell Group of companies that are carrying the particular activity described in this release.

Visit www.shell.com/gtl for more information about Gas to Liquids, including further details of the industrial partners with whom Shell collaborated on these projects.

ENQUIRIES:
Media Contacts:
Shell Oil Company	Helen Bow	713-241-4544
Shell International	Andy Corrigan	044 207 934 5963

Background

1. Over the last decade, Shell has been operating the world’s first commercial Gas to Liquids plant of its type at Bintulu, Malaysia with its proprietary technology to convert natural gas into clean liquid products. The Shell GTL Fuel used in the trial was supplied from the 14,700 bbl/d Shell Middle Distillate Synthesis Plant in Malaysia.
2. In July 2004, Shell signed a Development and Production Sharing Agreement to build the first world-scale manufacturing plant in Qatar, a country that holds almost 15% of the world’s gas resources. The 140,000 bbl/d plant will use Shell’s leading proprietary Gas to Liquids technology and is expected to start up in 2009.
3. The fleet vehicles operated by Yosemite Waters delivered and distributed
    bottled water to the Los Angeles area. The Class 6 delivery trucks were fitted with an aftertreatment system, Catalyzed Continuously Regenerating Technology, supplied by Johnson Matthey, and International, the truck manufacturer provided technical support. Average mileage accumulation was 1500 miles per month, on dedicated routes through suburban and city driving conditions
4. Results from the Yosemite Waters trial have been presented today at the SAE conference in Tampa, Florida.(1) The emission results compare GTL Fuel with CARB specification diesel. Over a City Suburban Heavy Vehicle drive cycle, GTL Fuel (no exhaust filter) reduced all regulated emissions, with oxides of NOx reductions of 8% and particulate matter (PM) reductions of 33%. These results were further improved with City Bus drive cycles and the use of calatysed diesel particle filters to a level of NOx and PM reductions of 20% and 97% respectively.
5. Partners in the Yosemite trial were National Renewable Energy Laboratory, South Coast Air Quality Management District, International Truck and Engine Corporation, Johnson Matthey, Shell Global Solutions (US) Inc, West Virginia University and Yosemite Waters.
6. The fleet vehicles operated by Ralphs Grocery deliver produce and foodstuffs from the Riverside depot. The Class 8 trucks had modified engines and integrated after-treatment systems. Ricardo Consulting managed the modification, with support on engine issues from Cummins and after-treatment from Cleaire. Project management is by Automotive Testing Laboratories Inc.
7. Government partners in the Ralphs Groceries trial are National Renewable Energy Laboratory ( NREL- part of DOE) South coast Air Quality Management District. (SCAQMD), California Energy Commission (CEC).
8. GTL fuels are sometimes termed Fischer-Tropsch (FT) fuels, on account of the FT process used in their manufacture

 (1) Paper presented at Society of Automotive Manufacturers Powertrain and Fluid Systems Conference was titled ‘ Fuel Property, Emission Test, and Operability Results from a Fleet of Class 6 Vehicles Operating on Gas to Liquids Fuel and Catalyzed Diesel Particle Filters.