 Care for the environment is crucial in all our planning and decision making, whether we are seeking future sources of energy in environmentally sensitive areas or caring for the interests of the communities in which our refineries and terminals are situated. Our environmental performance reflects our work to reduce greenhouse gas emissions and other noxious air emissions caused during the manufacturing process as well as producing lower sulphur and benzene fuels. We have been publicly reporting our greenhouse gas emissions via the Federal Government's voluntary Greenhouse Challenge Plus programme since 1995. Our production of low benzene fuel and low sulphur diesel at our refineries two years ahead of mandatory government deadlines are described earlier in this publication (see Technology and Innovation, page 14). Efficient use of energy and resources minimise greenhouse gas emissions and bring significant benefits to the business. Our refineries at Geelong and Clyde have had a focus on energy efficiency for many years and have undertaken detailed energy analysis since the 1980s. We review results and consider ways of lowering our use of energy, and therefore our production of greenhouse gas emissions. Both refineries regularly update environmental improvement plans (EIPs) that are developed by our staff in consultation with community representatives and environmental authorities. When the Geelong Refinery produced its new EIP for 2007-2009, it worked with its community advisory panel to ensure concerns were addressed. The refinery sought community views for a four-week period before finalising the EIP. Councillor Lou Brazier, Chairman of Shell's Community Advisory Panel in Geelong commented that Shell had demonstrated its commitment to being a responsible steward of the environment through the adoption of the EIP. Refining fuel requires a large amount of water, mainly for cooling and to produce the steam required for processing at our refineries. We are actively looking for new ways of saving and recycling water. For example, at our Clyde refinery we are in the final stages of discussion with Sydney Water around the feasibility of migrating current fresh water consumption to recycled water by 2011. During 2008 we will be commissioning an $80 million upgrade to our fluidised catalytic cracking unit (FCCU) at Clyde which aims to reduce steam consumption and, consequently, reduce water consumption. At Geelong more than a third of the fresh water used to generate steam in our boilers is recovered and reused. Along with other water saving initiatives this has cut the refinery's fresh water consumption by 300,000 litres per day. Our terminal at Newport has reduced the amount of water used for fire tests by an average of 30,000 litres each week. Minimising and recycling waste is a high priority at our refineries. One of our initiatives in Geelong in 2005 was to pioneer Geo-tube(r), a giant 35-metre long bag that separates oil from water. This is a great sustainability project as it cuts waste to landfill (saving $1 million a year in fees) and allows us to recycle the waste in our composting park. While oil spills have occurred in the past as a result of historic operational practices, there has been a dramatic reduction in the number of spills. This has come about through improvements to our operating practices, investment in and maintenance of equipment, and working with regulatory bodies and the community. Ensuring our staff respond promptly and efficiently when a spill does occur is also a crucial element to managing this industry-wide challenge. |