London - Following announcement of a joint development agreement in June 2020, Dow and Shell today report progress on their technology programme to electrically heat steam cracker furnaces. This new route has the potential to significantly reduce CO₂ emissions from one of the central processes of the chemical industry.

The companies confirm that the joint programme has been awarded €3.5 million (USD$4.2 million) in MOOI (Mission-driven Research, Development and Innovation subsidy) scheme funding by the Netherlands Government. They also announce joining forces with The Netherlands Organisation for Applied Scientific Research (TNO) and the Institute for Sustainable Process Technology (ISPT). This multi-company collaboration aims to accelerate key milestones for the near-term progress and longer-term breakthroughs needed. 

In the first year, the programme has advanced electrification solutions for today’s steam crackers while also pursuing game-changing technologies for novel designs of electrified crackers in the longer-term. The dual-path approach aims to support emission reductions required to meet the companies’ 2030 CO₂ ambitions and their targets to achieve net zero emissions businesses by 2050 or sooner, in line with the Paris agreement. Joint teams in the Netherlands and the United States have deployed their expertise in electrical design, metallurgy, hydrocarbon technology and computational fluid dynamics to narrow down concepts, validate emissions benefits, advance patents, demonstrate the durability of electric heating elements, and partner with equipment suppliers. 

The companies are now evaluating construction of a multi-megawatt pilot plant, with potential start-up in 2025, subject to investment support.

The two new collaborators bring further expertise and a common commitment to a low-carbon future. TNO has deep knowledge in high temperature heat transfer applications and plays a leading role in identifying innovative electrical technologies that could be deployed in industry. It is a founding partner of the state-of-the-art Field Laboratory Industrial Electrification in Rotterdam. ISPT is focused on the system integration of preferred concepts, connecting the dynamics of breakthrough technologies with those of utilities and infrastructure in the chemicals industry through the energy transition.

Thomas Casparie, Executive Vice President of Shell’s global chemicals business, said “Being selected for funding from the Dutch Government is a vote of confidence in the initial progress of this joint e-cracking programme, and its potential to help transform the chemicals industry. The effort is an example of genuine cross-company collaboration to accelerate decarbonisation, and it’s great to have our two new partners aboard.”

“Our multidisciplined team has forged a strong working foundation and made significant progress in the first year of our multi-generational plan,” Keith Cleason, Vice President Dow Olefins, Aromatics and Alternatives business. “We are pleased to add ISPT and TNO to the joint programme as they bring complementary expertise and share the same drive to bring viable, low-carbon technologies online as soon as they are feasible.”

Shell Chemicals media contact:

James.Forth@shell.com

Notes to Editors

About Shell Chemicals

Shell’s global chemicals business supplies customers with a range of base, intermediate and performance chemicals used to make products that people use every day. These finished products contribute to society’s ability to live, work, care and respond to climate change. As global demand for chemicals increases, we plan to grow our business, by understanding and providing for our customers’ needs. Our business is versatile and resilient. We have strong market positions, integrated world-scale assets, leading technologies and a commitment to a sustainable future. References to the expressions “Shell”, “Shell’s chemicals business” or “Shell’s chemical plants” refer to multiple companies that are part of the Shell Group that are engaged in chemical or related businesses. For more information, please visit www.shell.com/chemicals.

About Dow

Dow (NYSE: DOW) combines global breadth, asset integration and scale, focused innovation and leading business positions to achieve profitable growth. The Company’s ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company, with a purpose to deliver a sustainable future for the world through our materials science expertise and collaboration with our partners. Dow’s portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer care. Dow operates 106 manufacturing sites in 31 countries and employs approximately 35,700 people. Dow delivered sales of approximately $39 billion in 2020. References to Dow or the Company mean Dow Inc. and its subsidiaries. For more information, please visit www.dow.com or follow @DowNewsroom on Twitter.

About The Netherlands Organisation for Applied Scientific Research

TNO connects people and knowledge to create innovations that sustainably strengthen the competitiveness of companies and the well-being of society. That is our mission and more than 3400 TNO professionals work on it every day. We do this together with partners and focus on nine domains, including the energy transition. Together with the industry and the government, we want to accelerate the energy transition so that by 2050 the Netherlands and other countries will have an energy system without CO₂ emissions. The energy transition also offers the Dutch business community the opportunity to lead the way and to export their innovative products and thus contribute to the energy transition worldwide.
https://www.tno.nl/en/focus-areas/energy-transition/roadmaps/towards-co2-neutral-industry/

About The Institute for Sustainable Process Technology

No circular economy without a sustainable process industry. The industry is the driving force and connector in re-use of residual flows and waste streams, system integration of energy demand, development of hydrogen as feedstock and energy carrier, and so on. Therefore, the Institute for Sustainable Process Technology (ISPT) connects stakeholders from different sectors and disciplines in an open innovation platform, where we work together on ground-breaking innovations towards a circular and CO₂-neutral process industry in 2050.
https://ispt.eu/

Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this release “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this release refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations” respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This release contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. There can be no assurance that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2020 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this release, 16 June, 2021. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this release.

With respect to operating costs synergies indicated, such savings and efficiencies in procurement spend include economies of scale, specification standardisation and operating efficiencies across operating, capital and raw material cost areas.

We may have used certain terms, such as resources, in this release that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.

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