Truck on the road

The demand for low carbon fuels in transport is expected to double by 2030. We are listening to our customers and growing our low carbon fuels business to help them travel in cleaner ways.

Our commitment

Our low carbon fuels operations go hand in hand with our work around electric vehicle charging, hydrogen and liquefied natural gas (LNG) as fuels. Together they form part of a wider commitment to provide a range of lower-carbon transport options for customers.

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Working with today's infrastructure

LCF can be blended with existing fuels such as gasoline and aviation fuel, and don't require costly investment in new infrastructure. That means they are a practical option for reducing transport emissions for our customers today.

Our focus on long-haul journeys

LCF play a vital role in trucking, aviation and shipping. This is because liquid LCF provide a lot of energy for a given amount of fuel. Electricity and hydrogen offer solutions over shorter distances today but, the longer the journey, the more important LCF are.

Biodiesel, bioethanol and SAF offer practical, cost-effective solutions for reducing CO2 emissions associated with long journeys. They do not require investment in new infrastructure, and provide the same high energy density as traditional fuels.

Supplying our customers

Sales & Marketing
Shell employee refuelling a car

Motorists

Shell is one of the world’s largest traders and blenders of biofuels. In 2019, we blended around 10 billion litres of biofuels, helping retail customers across the world decarbonise millions of journeys each year. Our renewable compressed natural gas (R-CNG) and liquified renewable natural gas (bio-LNG) fuels help decarbonise road freight journeys each and every day.


Shell refuelling truck in front of an airplane

Sustainable Aviation Fuel

In July 2020, alongside World Energy, Shell agreed to supply Amazon Air with up to six million gallons of blended SAF which has the potential to reduce carbon emmisions by 20%. In late 2020, Shell began working with Neste to increase SAF supply. Shell also has supply agreements with Schiphol Airport, DHL Express and Red Rock Biofuels.


partnership
EuroNet consortium

Bio-LNG network

As part of the EuroNet consortium, Shell, alongside DISA, Scania, IVECO and Nordsol, are working to put 2000 more LNG-powered trucks on the roads, and build the LNG service stations and production facilities needed to support these journeys. As part of the consortium, we hope to supply our customers with net-zero bio-LNG by 2025.


Carson

R-CNG fuelling site

Shell is constructing its first R-CNG fuelling site at its Carson terminal in California. The fuelling site will source RNG from Junction City in Oregon, and will allow Shell to decarbonise its own road freight fleet in and out of the terminal. R-CNG will also be provided for Shell's hauling partners, equipped with ultra-low NOx Natural Gas vehicles.


man getting on truck

We supply and produce products to decarbonise journeys for our customers. These products range from Sustainable Aviation Fuel, to renewable compressed natural gas and biodiesel for road transport customers, and biobunker for our marine customers.

Production around the world

Biofuels
harvesting sugar cane with machine

Raízen JV

Through Raízen, Shell is already a significant producer of LCF. Raízen hosts one of the world’s first waste to ethanol plants, and the 4ᵗʰ largest renewable natural gas (RNG) facility in the world. If Raízen were a country, it would be the fifth largest producer of bioethanol in the world. In 2019, Raízen produced 2.5 bln litres of sugarcane ethanol.


Overview photo of Rheinland refinery

Rheinland refinery

We are transforming our manufacturing operations. This means changing what we make and how we make it to produce low carbon products for our customers. In 2020, our Rheinland refinery produced enough low carbon diesel to fill over half a million vehicles a year, removing 50kt of CO₂ in the process, with ambitions to increase production from 2021 onwards.


New Energies
Varennes Carbon Recycling

Varennes Carbon Recycling

With Enerkem and other investors, Shell is building an LCF plant in Quebec. Commissioning of the first phase of the facility is scheduled for 2023 and, once completed, the plant will treat more than 200,000 tonnes of non-recyclable commercial, industrial and wood waste per year, with an annual production of nearly 125 million litres of LCF.


Junction City

Junction City

Shell has begun start-up activities at Junction City in Oregon, its first US renewable natural gas (RNG) facility. Junction City will use locally-sourced cow manure and agricultural residues to produce 2,650 scfm of biogas, upgraded to approximately 736,000 MMBtu a year of RNG - that is enough to fuel approximately 10,000 cars a year in the US.


Our approach

Supporting our customers

airplane taking off

Producing and supplying LCF for our customers will help decarbonise the transport sector by helping them meet their own decarbonisation ambitions. This means providing an affordable, consistent and robust service, using our experience of maximising our supply chains, and developing our marketing businesses so that we are able to grow the impact our lower-carbon solutions have on customers and society.

Decarbonising long journeys

large ship on water

Biofuels are one of the largest sources of renewable energy in use today. They can be blended with traditional fuels and used in vehicles and infrastructure without expensive modification. This is crucial, because transport accounts for more than a quarter of the world’s energy use and one-fifth of its energy-related CO2 emissions.

Electrification of road transport, driven by advances in EVs and hydrogen, will only continue to accelerate the decarbonisation of road transport. However, LCF will be needed to decarbonise longer journeys by road, sea and air for decades to come. Our ability to serve our road freight, aviation and marine customers is key to decarbonising the entire transport sector.

Our net-zero ambition

woman overlooking a city full of lights

For the world to tackle climate change and meet the goals of the Paris Agreement by limiting the global temperature rise to 1.5° Celsius, society needs to stop adding to the stock of greenhouse gases in the atmosphere – a state known as net-zero emissions. Advanced parts of the world are likely to need to reach that goal by 2050. Shell supports this effort. In fact, Shell has set itself an ambition to become a net-zero emissions energy business by 2050 or sooner, in step with society. Shell’s LCF business supports this aim and is anchored around our access to affordable feedstocks, commitment to sustainable practices, and our ability to commercialise advanced technology.

Transforming production

man writing in notebook on a plant

We are determined to provide our customers with lower-carbon transport options. And that means growing our production capacity by transforming our existing Energy and Chemicals Parks, building new low carbon fuels facilities, forming strategic partnerships with cutting-edge technology companies, and working to develop new technology and optimise our operations.

Our ability to integrate technologies, like green hydrogen produced from renewable power or carbon capture and storage (CCS), into our production processes at a commercial scale allows us to further reduce the carbon intensity of our products.

Partner of choice

glass building with Shell flag on top

The combination of our technology, experience, supply chain optimisation and growing production capacity makes us a partner of choice for many. This is exemplified by our recent investments with Enerkem to build Varennes Carbon Recycling, and our recent supply agreements with World Energy, Neste and Red Rock which have helped us support our aviation customers like Lufthansa, Amazon Air and DHL Express.

Our products and technologies

HEFA

man in work gear on a plant

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.

IH²®

man working with protective glasses

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.

Synthetic Fuels

man and woman in a lab checking fluids

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

cow in a field

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.

RNG: from organic waste to vehicles

Press the marked areas to learn more about each
isometric illustration of the RNG process
Detail 1

Creating biogas

Cow manure is collected from barns and fed into anaerobic digestors. Subsequently the manure will be broken down which creates biogas.

Detail 2

Creating RNG

Raw biogas is processed into renewable natural gas (RNG), which meets the same pipeline specifications of fossil-based natural gas.

Detail 3

Transportation

If the farm is not located close to a natural gas pipeline, the RNG is transported to a RNG unloading station.

Detail 4

Interstate network

The pure RNG is injected to the interstate natural gas pipeline. The fuel powers CNG vehicles.

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Feedstock sustainability

Protecting the environment

a father and son in a field

Ensuring our operations do not lead to deforestation is core to our business principles. This means working with our supply chain to prevent deforestation, protect biodiversity, improve traceability, and guard against land being used to grow energy crops which should be supporting the growing demand for food.

We fully support the adoption of international sustainability standards for agricultural practices, and work with the Round Table on Responsible Soy, the Roundtable for Sustainable Palm Oil, Bonsucro, the Roundtable for Sustainable Biomaterials, and the International Sustainability and Carbon Certification for feedstocks.

All of our purchased feedstock that are considered to be high risk from a human rights, biodiversity, or release of carbon stock perspective are certified as sustainable by credible sustainability initiatives. 99% of our purchased volumes of biofuels are either covered by contracted sustainability clauses.

Wastes and residues

tractor on land moving a trailer full of agricultural waste

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.

Animal care and welfare

farmer surrounded by pigs

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.

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