Ramping Up Technologies and Production Methods to Meet Demand
Shell has announced that the company expects to deliver sustainable aviation fuel (SAF) from its 820’000 mt/year biofuel plant in Rotterdam starting in 2025. Consumers said further advancements in commercially ready technologies and production methods were required to meet demand. The Shell Energy and Chemicals Park Rotterdam facility utilizes HEFA technology to produce biofuels. This technique, which Shell describes as "proven and mature," involves refining vegetable oils, waste oils, or fats using hydrogen.
In response to queries regarding suspending its biofuels unit and a Group II base oil plant in Singapore earlier this year, Shell remained committed to investing in promising technologies to increase SAF production. Additionally, they emphasized that their expanding portfolio of SAF supply agreements will contribute towards meeting global demand for environmentally friendly aviation fuel.
In late 2021, the company announced that they were considering establishing a biofuels facility in Singapore with an annual production capacity of 550,000 metric tons. The objective is to offer low-carbon fuels like SAF and renewable diesel. According to their website announcement, this will be one of Asia's most extensive facilities for producing biofuels when operational. Shell plans to utilize this new development to supply customers across Asia and worldwide with SAF products.
Shell still needs to provide information on the output capacity of its two suspended projects. The company strives to generate nearly 2 million metric tons per year of SAF by 2025 while ensuring that at least one-tenth of its global sales for aviation fuel are contingent upon SAF production by 2030. Moreover, Shell has been investing substantial funds lately in technologies designed to bolster SAF production as efficiency becomes more critical due to the objective set ahead aiming towards zero emissions from industries before 2050. A notable venture being explored among them is a start-up aiming to derive SAF via ethanol pathways. Additionally, Shell launched a blockchain platform in 2022 that aggregates SAF demand to boost reliability for suppliers while increasing investments in further production.
Less Demand For SAF in Asia
For more information about the new biofuel plant in Rotterdam and how it will affect international SAF supply, check out SPGlobal.com:
“Platts, part of S&P Global Commodity Insights, assessed Asia Sustainable Aviation Fuel (PFAD) on May 2 at $1,480.05/mt, down 1.2% on the month while SAF (UCO) was at $1,650.49/mt, down 1.5%. Platts's assessment also showed the price of SAF is around twice that of conventional jet fuel in Asia.
Another significant obstacle in Asia is a lack of government intervention compared to other regions, as fewer mandatory regulations enforce or incentivize commercial SAF adoption, resulting in less financial support for Asian airlines to take up the more expensive SAF. In contrast, the EU agreed on a 'ReFuelEU Aviation proposal' last week, which requires fuel suppliers to blend SAF in increasing amounts from 2025. The new rules will also require fuel suppliers to supply a minimum share of SAF at EU airports, starting at 2% of overall fuel supplied by 2025 and reaching 70% by 2050.
Also, aircraft operators departing from EU airports are to refuel only with fuel necessary for flight to avoid emissions related to extra weight or carbon leakage caused by 'tankering', or deliberately carrying excess fuel to avoid refueling with SAF.”
From Shell To Deliver First Saf From Rotterdam Plant From 2025 - SPGlobal
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Written by Fuel Pro Source
May 4th, 2023