Shell Ponder Biofuels Plant to Meet Rising Asian Aviation Demand
by Florence Tan (CNA) Global major Royal Dutch Shell may build a biofuels plant in Singapore to meet the region’s rising demand for sustainable aviation fuels (SAF), the head of its downstream business said on Wednesday.
The proposed 550,000 tonnes per year (tpy) project at Singapore’s Bukom Island could produce SAF, bionaphtha for petrochemicals and renewable diesel to supply major Asian hubs such as Hong Kong International Airport and Singapore’s Changi, Shell Downstream Director Huibert Vigeveno told reporters.
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To make room for low-carbon fuel production, Shell has shut a crude distillation unit at Bukom, which reduced its refining capacity … by half, Vigeveno said, despite a recovery in global refining margins.
“The alternative value is much more valuable,” he said, adding that Shell is focusing on higher-value products such as performance chemicals, bitumen and also lubricants, which provide a return on capital employed of more than 20per cent, he said.
“Refinery margins have improved a bit, but they’re far from the levels they used to be,” Vigeveno said, adding the sector still had overcapacity.
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Vigeveno said hydrogen could be viable for shipping this decade. READ MORE
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