Energy efficiency in our operations
Shell aims to be net zero on emissions generated by all our operations by 2050, as well as on emissions associated with the energy, we need to power them. To help achieve this, our production sites are increasingly using lower-carbon energy sources. Shell’s Renewables and Energy Solutions business (formerly New Energies) is playing a key role in developing these.
Greenhouse gas emissions (GHG) from making our products that cannot be avoided will be balanced using technology or carbon offsets that avoid emissions or remove them from the atmosphere. In October 2021, Shell set a target to reduce absolute emissions by 50% by 2030, compared to 2016 levels1. This covers all emissions in Scope 1, which come directly from our operations, and in Scope 2, from the energy we buy to run our operations2. Emissions from our own operations make up less than 10% of our total emissions.
Transforming refineries into energy and chemical parks with lower emissions
In 2021, as part of the Powering Progress strategy, Shell announced plans to transform our 14 refineries3 into five energy and chemicals parks with lower emissions from their own operations. For example, the park at Bukom in Singapore has the ambition to halve emissions from its operations by 2030 (compared to 2016). The other four parks are located in Rheinland (Germany), Rotterdam ( Netherlands), Norco (USA) and Scotford (Canada).
At Shell Energy and Chemicals Rheinland, we started up Europe’s largest PEM hydrogen electrolyser in July 2021. The electrolyser uses renewable electricity to produce up to 1,300 tonnes of green hydrogen a year. The hydrogen will be used to produce fuels with lower carbon intensity. In November, Shell also announced a proposal to discontinue crude oil processing at one of three crude distillation units at Rheinland. (FID is not expected until 2023). If approved, by decommissioning the plants, approximately 1 million tonnes a year of direct CO2 emissions would potentially be saved, this includes the emissions from new or converted plants as well.
Using renewable energy in our operations
Shell is investing in renewable energy to improve energy efficiency and help reduce emissions. In November 2021, we announced plans to build a 58-megawatt solar farm adjacent to our Scotford energy and chemical park. Construction will begin in 2022 and the solar farm is expected to begin providing electricity to the refinery by the end of 2023. It will provide 20% of Scotford’s energy needs.
The Timi gas development in Malaysia is an example of adopting a solar and wind hybrid power generation system instead of using a conventional power generation system that relies mainly on burning hydrocarbons. The unmanned platform will be approximately 60% lighter than the type of wellhead platform that would typically be used in a similar development. This means lower Scope 1 emissions and more attractive products for the end user.
At Ormen Lange in Norway, a compression system is to be installed on the seabed near the wellheads to help increase gas flow from the reservoir into the wells. It will be the first gas field to install such a subsea compression system without support from a topside host facility, resulting in less visual and physical impact on the area’s natural environment. The entire production facility will use power from shore, with the CO2 intensity expected to be best in class.
1 Calculated on a net basis, which allows for the use of carbon capture and storage as well as nature-based solutions.
2 Under our operational control.
3 14 refineries in Q2 2021.
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