SINGAPORE – Petrochemical giant Shell is halting exploration for two projects in Singapore: a biofuels unit and a Group II base oil plant.
The biofuels project would have produced low-carbon fuels such as sustainable aviation fuel, renewable diesel for road transport or renewable chemicals, while the Group II base oil project would have produced base oil that goes to manufacture of advanced lubricants.
But the company said its Powering Progress strategy, which aims to accelerate the transition of its business to net zero emissions, remains unchanged and it will continue to supply base oil and lubricants as well as biofuels to its customers in Singapore and the region .
“We will continue to drive the transformation of our business in Singapore through the energy transition,” said a company spokesperson. “Shell Singapore’s position as a commercial and marketing hub for the region continues to thrive.”
The company noted that it is working on a number of opportunities, with some major milestones this year.
“For example, our plant that allows us to upgrade pyrolysis oil from hard-to-recycle plastics into renewable chemicals will go live. We will soon launch electric ferries, paving the way for decarbonizing ships in the port of Singapore In addition to these, we are installing close to 5,000 electric vehicle chargers across Singapore in the coming years,” the spokesperson added.
Shell said it remained committed to accelerating its transition and halving its own emissions from its operations by 2030 from 2016 levels. As it cuts production of traditional fuels in Singapore, including halving of its crude processing capacity, is developing plans to produce sustainable aviation fuel and establish a carbon capture and storage centre, which would capture and safely store emissions from Shell and its customers in the region.
Shell announced last year that it had upgraded facilities to supply sustainable aviation fuel to Seletar Airport and other customers, including SIA Engineering Company.
In November 2021, Shell announced plans to build the unit that improves the quality of pyrolysis oil, a liquid made from hard-to-recycle plastic waste that would otherwise have gone to landfill, and turns it into chemical feedstock for the your plant Scheduled to start production this year, the unit at Shell’s Pulau Bukom manufacturing site will be Asia’s largest and Shell’s first globally, with a capacity of 50,000 tonnes per year. What it processes is equivalent to the weight of about 7.8 billion plastic bags.
The latest announcement does not affect these and other operations, including plans to build a new pyrolysis oil upgrading unit.
Singapore is one of Shell’s global hubs.
Its activities here include refining and petrochemical businesses in Pulau Bukom and Jurong Island, lubricant manufacturing in Tuas, trading operations and an extensive network of retail operations throughout the island.
“We will continue to work with the government and our customers on opportunities to meet their energy needs and decarbonize sector by sector,” the spokesman said.
