Low carbon fuels

Shell’s hydroprocessed esters and fatty acids (HEFA) and co-processing technology converts crop oils, such as rapeseed oil, animal fats and waste feedstocks (e.g. used cooking oil), into a range of LCF, including renewable diesel and SAF. The carbon intensity of the product depends on the feedstock used. Producing biofuels from waste feedstocks is generally more sustainable than using food or energy crops, since the feedstocks do not use any land, and can provide a complementary solution for existing problems such as landfill. Integrating green hydrogen or carbon capture and storage into the production process can reduce the amount of carbon in the final fuel even further.

Shell’s IH²^® technology is expected to process municipal solid waste, agriculture residue, and woody biomass waste into high quality transportation products. In 2017, Shell completed construction of a demonstration plant at the Shell Technology Centre Bangalore, India. The plant, now in its final research and development stage, uses a technology called IH²® (a trademark of the Gas Technology Institute) that turns agricultural residues and other wastes into transport fuel. The process is an advanced hydropyrolisis technology that uses catalyst processes to remove oxygen from biomass to produce hydrocarbon products from the remaining material. Through Shell Catalyst and Technologies, we have acquired exclusive rights to use the technology.

Shell is working to produce low carbon synthetic fuels derived from renewable feedstocks like biomass, RNG or a combination of water, renewable power and CO₂. These projects pull together a variety of technologies and are a promising option for hard to abate sectors like aviation. Although we are not operating at a commercial scale yet, Shell recently provided a batch of synthetic kerosene made from CO₂, water and renewable power to KLM which was blended with fossil-based jet fuel, to power their first commercial flight using this synthetic fuel mixture.

The process builds on proprietary Fischer-Tropsch technology which we have successfully deployed at scale at Pearl GTL in Qatar, the world's largest gas to liquids plant. This facility turns natural gas into a variety of products including cleaner burning fuels, chemicals and lubricants. Synthetic fuels are generally non-toxic, biodegradable and better for local air quality because they emit less NOx.

RNG, also known as biomethane, is gas derived from the processing of organic waste, such as food waste, agricultural residues or manure, under a controlled environment, often referred to as anaerobic digestion, until it is fully interchangeable with conventional natural gas.

The use of RNG in natural gas-fuelled vehicles, either as renewable compressed natural gas (R-CNG) or liquefied renewable natural gas (bio-LNG), offers customers already using these vehicles an attractive alternative for lowering their carbon footprint and meeting their sustainability goals. Bio-LNG can reduce lifecycle emissions by as much as 80-95% compared to conventional fuels, depending on the fuel source and production pathway.

The carbon intensity of our products depends on the feedstocks chosen and the process and technologies we use. New technologies are enabling our progression from crops to more sustainable alternative feedstocks, such as agricultural waste, inedible oils or crops (cellulosic biomass) and manure. This improves the sustainability of our products, and it is our intention to transition towards wastes as our primary feedstocks in the future.

Producing LCF from waste feedstocks is generally more sustainable than using food or energy crops, however the issues surrounding waste-based feedstocks can be wide-ranging and context specific. We work on an ongoing basis to understand the sustainability issues associated with each project on a case-by-case basis, and work very closely with our farmers and suppliers to share best practices and raise sustainability standards across the sector.

Manure from animals bred or kept for the production of food or feed is a valuable renewable fuel source and is used as an RNG feedstock. Shell is committed to ensuring animal care and welfare principles are implemented and adhered to throughout its supply chain. We work closely with partners, and actively engage animal welfare experts, to understand best practices and incorporate them into our operating standards. We work with our suppliers on a case-by-case basis, however in the US, potential standards include the Farmers Assuring Responsible Management (FARM) programme for animal care and the Gold Standard Dairy programme for the Dairy Farmers of America.