MOSCOW (MRC) -- Shell will have a 40% interest in the plant using technology developed by Enerkem, a leading Canadian clean tech company. Enerkem announced the project in December 2020, subject to finalization of commercial agreements, as per Shell's press release.
The approximately CD875 million commercial-scale facility will be constructed in Varennes, Quebec, and will produce low-carbon fuels and renewable chemicals products from non-recyclable waste using Enerkem’s proprietary technology. Commissioning of the first phase of the facility is scheduled for 2023. Critical investment in the plant comes from Shell, Enerkem, Suncor, Proman and Hydro-Quebec, as well as from the Quebec and Canadian governments.
“Building a commercial-scale low-carbon fuels plant is one of the ways Shell is advancing cleaner fuels and evolving to meet the changing expectations of our customers,” said Michael Crothers, Shell Canada President and Country Chair. “Canada is well suited to capitalize on the energy transition thanks to the ingenuity of Canadians and our willingness to work together. We’re grateful for the collaboration between industry and government that has been instrumental in making this project a reality.”
Once completed, the plant will treat more than 200,000 tonnes of non-recyclable waste and wood waste per year with an annual production of nearly 125 million litres of low carbon fuels.
“The Varennes Carbon Recycling plant demonstrates our commitment and ability to use wastes as a feedstock to provide our customers with low carbon, high quality and affordable products,” added Crothers.
Shell has been a significant producer of ethanol as a low carbon fuel for the last ten years through Raizen, our joint venture in Brazil. Bioethanol is an effective way to reduce road transport emissions today, without the need to invest in new vehicles or infrastructure and already play a significant role in helping to decarbonise road transport in the Americas and in Europe.
Shell’s ambition to become a net-zero emissions energy business by 2050 or sooner, in step with society, includes reducing the carbon intensity of the company’s energy products. Shell’s low-carbon fuels production strategy is anchored around its access to competitive feedstock, commercialization of advanced technology and the building of internal capability.
In addition to diverting waste from landfill sites, the Varennes Carbon Recycling plant will expand the overall supply of alternative fuels and increase low-carbon fuels production in Quebec, accelerate greenhouse gas reduction in the transportation sector and increase Quebec's leadership in renewable energy and innovation.
As MRC wrote before, Royal Dutch Shell has reported an outage at its olefins plant in Deer Park, Texas, on 5 January, 2021. The plant flared for 16 hours last Tuesday following unspecified process upset. Maximum steam cracker operating rate in Texas falls to 89%.
Ethylene and propylene are feedstocks for producing PE and polypropylene (PP).
According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.