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Shell said it will convert the site’s hydrocracking unit into a production unit for Group III base oils. These will be used mainly in engines, with a capacity of around 300,000 metric tonnes per year. An equivalent of about 9% of current EU demand and 40% of Germany’s demand for base oils.
Shell will close a refinery in Germany and turn it into a lubricants plant
This decision is expected to reduce Shell’s operational carbon emissions. The emissions are known as Scope 1 and 2 emissions. They total around 620,000 tonnes per year.
Shell aims to reduce total greenhouse gas emissions. The company wants to reach net zero by 2050. It also plans to sell its refining and petrochemicals site in Singapore.
Crude oil processing at the Wesseling site will end in 2025. Operations will continue at the Godorf refinery.
The new production facility in Wesseling is expected to start operations in the second half of this decade.
Shell Energy and Chemicals Park Rheinland includes both the Wesseling and Godorf sites. Shell Energy currently has a capacity of more than 17 million tonnes of crude oil per year, of which Wesseling produces 7.5 million tonnes.
Shell has previously invested in a 10 megawatt electrolyser used to produce zero-carbon hydrogen and a biomethane liquefaction plant at the Rheinland facility.
Since 2020, Shell has divested five refineries, closed one and converted one to a terminal.
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