Shell (RDSA) builds plant to upgrade oil made of plastic waste
01:52, 24 November 2021
Shell will build a plant that can improve the quality of pyrolysis oil, a liquid made from hard-to-recycle plastic waste that would have gone into a landfill and turns it into chemical feedstock for its plant.
The new pyrolysis oil upgraded unit will be built in Shell’s Pulau Bukom in Singapore and is slated to start production in 2022. It will be the largest in Asia and Shell’s first globally, the company said in a press release on Tuesday.
The plant will have a capacity to process 50,000 tonnes per year or equivalent to the weight of about 7.8 billion plastic bags.
Shell will use the treated pyrolysis oil to produce circular chemicals that are used in hundreds of useful, everyday products, from tyres to mattresses. The move is a response to growing customer demand and Shell has already signed its first circular chemicals agreement in Asia with Asahi Kasei.
The new investment is a key element in the transformation of the Bukom manufacturing site into the Shell Energy and Chemicals Park Singapore which will be fully integrated with Shell Jurong Island.
The facilities will focus on supplying low-carbon energy and sustainability products for Shell’s customers, such as biofuels, circular chemicals, bitumen, advanced lubricants and renewable energy.
Emission cut target
In line with the company’s global targets, Shell Singapore will accelerate its transition and cut its own emissions from its operations by half in 2030 from 2016 levels.
Shell is halving its crude processing capacity in Singapore. It is developing plans to produce sustainable aviation fuel and set up a carbon capture and storage hub, which would capture and safely store emissions for Shell and its customers in the region.
The company also plans to build a biofuels facility with a capacity of 550,000 tonnes per year which is subject to a final investment decision. The facility will turn hydrogen made from renewable resources and bio-feedstock, such as used cooking oils and animal fats, into low-carbon fuels, such as sustainable aviation fuel, renewable diesel for road transport or renewable chemicals.