Decarbonisation Technology - February 2023

Bio fuel LNG SAF

Lubricants Bitumen Performance chemicals

Supplying industry partners in NRW

Carbon capture and storage

Heating

Crude oil

Solar

Plastic waste and municipal solid waste

Biomass and waste oil/gas

Wind

Figure 2 Shell’s Rheinland site is quickly transforming to meet the goal of being a platform for sustainable value chains by 2030

beneath the North Sea. This is the Delta Corridor clean hydrogen and CCS project, which involves a consortium of companies and expects to avoid and abate 22 Mt/y of emissions. But this is not new ground for Shell since we offer the full integrated end-to-end management chain of CO 2 from capture, through transportation, to storage; we have experience of doing this for decades. For example, Shell’s ADIP and Cansolv CO 2 technologies * can capture CO 2 and we have multiple units in operation. For transportation, Shell has operated CO 2 pipelines since the 1970s and is leading the shipping solution in CCS projects such as Northern Lights in Norway and Aramis in the Netherlands, with liquid CO 2 transporter ships based on LPG design class. Lastly, when it comes to storage, Shell has been injecting CO 2 for oil recovery since the 1970s. Since 2015 over 7 MT of CO2 from the Scotford Upgrader has been captured and stored with the Quest CCS facility. Shell’s ambition is for Rheinland to become a platform for sustainable value chains by 2030, as shown in Figure 2 . Then, we will have both a much more varied feed slate and a more diversified product portfolio. Furthermore, all the projects mentioned above will combine as part of the integrated asset and enable optimisation among different elements, from mobility and heating through to growth areas such as performance chemicals, lubricants, and bitumen. This is likely to be particularly important as

demand is set to decline for mobility products and grow for chemicals. Conclusions What does this mean for refiners? Our experience at Rheinland provides some important lessons. First, refiners cannot do it on their own. We have to take our customers with us on this journey, which means working with the sectors that use the energy we provide and helping them find their own paths to net zero is essential. Second, integration is key. It enables you to optimise your product slate and deliver, for example, growth chemicals as well as low- carbon mobility energy products. Third, this is happening! Tackling climate change is an urgent challenge, and projects take time to be delivered. Perhaps the decarbonisation projects that refiners may need to start implementing will involve a different level of risk than they are used to, but our experience at Rheinland is demonstrating a path for refineries to decarbonise. * ADIP and Cansolv are trademarks of Shell.

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Jörg Dehmel joerg.dehmel@shell.com Chris Egby chris.egby@shell.com