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Shell to Transform Wesseling Refinery in Germany for Chemical Production by 2025

Shell to Transform Wesseling Refinery in Germany for Chemical Production by 2025

Berlin, January 26, 2024, The Europe Today: Shell announced on Friday its decision to close down its oil refinery in Wesseling, Germany, by 2025, marking a strategic move to transition the site into a chemical production facility as part of the company’s commitment to reducing carbon emissions.

The hydrocracker unit at the Wesseling site will be converted into a production unit for Group III base oils with a projected capacity of approximately 300,000 metric tons per year. This capacity is expected to cover approximately 9% of the current demand for Group III base oils in the European Union and 40% of Germany’s demand for such oils.

This shift in operations is anticipated to result in a substantial reduction of Shell’s operational carbon emissions, specifically Scope 1 and 2 emissions, by approximately 620,000 tons annually. The move aligns with Shell’s overarching goal to achieve net-zero greenhouse gas emissions, encompassing emissions from both its operational activities and customer fuel consumption, by the year 2050.

While crude oil processing at the Wesseling site is slated to conclude in 2025, the Godorf refinery, also part of Shell’s Energy and Chemicals Park Rheinland near Cologne, will continue its crude oil processing operations.

The converted production facility at Wesseling is set to commence operations in the latter half of this decade, showcasing Shell’s commitment to adapting its infrastructure in line with evolving environmental objectives.

Simultaneously, Shell is planning to divest its refining and petrochemicals site in Singapore, as the company strategically repositions its assets to meet its ambitious sustainability targets. This move follows Shell’s trend of divesting and transforming refineries, with several such actions taken since 2020 to align with its sustainability objectives.

The decision to transform the Wesseling refinery reflects Shell’s dedication to incorporating cleaner and more sustainable practices in its operations, contributing to the broader global efforts to combat climate change and reduce carbon footprints in the energy and chemical industries.