Shell has announced a strategic shift in its operations by closing its oil refinery in Wesseling, Germany, by 2025 and repurposing the site to produce lubricant feedstock, in line with the company’s initiative to curtail carbon emissions, as reported by Reuters on January 26. The hydrocracker unit at the Wesseling facility will undergo conversion into a production unit for Group III base oils, addressing 9% of the current EU demand and a substantial 40% of Germany’s demand for these oils. This transformation is anticipated to result in a notable reduction of approximately 620,000 tons per year in Shell’s operational carbon emissions, encompassing both Scope 1 and 2 emissions. As part of its broader commitment to achieving net-zero greenhouse gas emissions by 2050, Shell is also planning to divest its refining and petrochemicals site in Singapore, showcasing the company’s dedication to sustainability practices and emissions reduction.

The Wesseling site’s crude oil processing is slated to conclude in 2025, with the focus shifting towards the production of lubricant feedstock. The new production facility in Wesseling is expected to commence operations in the latter half of this decade. Shell’s Energy and Chemicals Park Rheinland, comprising both the Wesseling and Godorf sites, currently boasts a crude oil processing capacity exceeding 17 million tons annually. Since 2020, Shell has actively divested five refineries, closed one, and converted another into a terminal, underscoring its ongoing commitment to environmentally conscious practices and the reduction of carbon emissions in its operations.

Sources:

https://www.reuters.com/business/shell-shut-down-german-oil-refinery-convert-chemicals-2024-01-26/