Shell to transform Rheinland site for sustainable energy: A leap towards eco-friendly lubricants

Shell Deutschland GmbH has announced a significant step towards sustainable energy production. The company has taken a final investment decision (FID) to transform the hydrocracker at the Wesseling site of the Energy and Chemicals Park Rheinland into a production unit for Group III base oils. These oils are crucial in manufacturing high-quality lubricants, such as engine and transmission oils.

Ending Crude Oil Processing for Greener Alternatives

The Wesseling site’s shift away from crude oil processing, set to end by 2025, aligns with Shell’s commitment to reducing its carbon footprint. Huibert Vigeveno, Shell’s Downstream and Renewables Director, emphasizes this transition as a key move to serve the lubricant customer base with premium base oils. The initiative forms part of Shell’s strategy to create more value with fewer emissions.

Impact on Carbon Emissions and Renewable Energy Goals

This change at the Wesseling site, combined with the high degree of electrification of the new base oil plant, is expected to cut Shell’s scope 1 and 2 carbon emissions by around 620,000 tonnes a year. It aligns with Shell’s target to become a net-zero emissions energy business by 2050.

Start of Operations and Production Capacity

The new base oil plant, expected to begin operations in the second half of this decade, will have a capacity of approximately 300,000 tonnes a year. This production will cater to about 9% of the current EU demand and 40% of Germany’s demand for base oils.

Hydrocracker Technology and Market Growth

The hydrocracker technology, vital in converting heavy hydrocarbons into high-quality products, will play a crucial role in this transformation. The market for high-quality engine and transmission oils is expected to grow, further justifying Shell’s investment in this area.

Continuing Innovations at Rheinland

Shell continues to drive the transformation of the Energy and Chemicals Park Rheinland, with previous investments including a 10-megawatt electrolyser for renewable hydrogen production and a biomethane liquefaction plant. The Rheinland site, near Cologne, currently processes over 17 million tonnes of crude oil annually, of which 7.5 million tonnes are at the Wesseling site.

Ensuring Stable Fuel Supplies

Despite the cessation of crude oil processing at Wesseling, Shell assures that fuel supplies for the German market will remain stable and secure.

Shell’s investment in repurposing the Rheinland site reflects a growing trend in the energy sector towards more sustainable practices. By transitioning from traditional crude oil processing to producing eco-friendly base oils, Shell is not only adapting to market demands but also contributing significantly to the global effort to reduce carbon emissions. This initiative sets a precedent for other companies in the industry to follow, highlighting the importance of innovation and environmental responsibility in the energy sector.