Agreements with Shell on rapid and substantial reduction of CO2 emissions | News item

News item | 13-04-2023 | 13:45

Shell wants a significant reduction in CO quickly2emissions from the factories in Rotterdam and Moerdijk. The company wants 3.9 megatons less CO by 20302 expel. That is 20% of the total amount of CO produced by Dutch industry2 must reduce by 2030. Shell also wants to reduce nitrogen emissions by at least 10%. These and other plans are included in the letter of intent (Expression of Principles) signed today by Minister Micky Adriaansens (Economic Affairs and Climate), State Secretary Vivianne Heijnen (Infrastructure and Water Management), Frans Everts (President-Director Shell Netherlands), Pauline Buitink (Director Shell Energy and Chemical Park Rotterdam), deputy Jeannette Baljeu (South Holland) and King’s Commissioner Ina Adema (North Brabant). The document is an important step towards reaching concrete and binding tailor-made agreements between the government and Shell to reduce CO more quickly2 emissions and also contribute to a healthy and safe living environment.

Plans to emit less CO2

Shell produces raw materials for our necessary daily products, such as detergents, latex paints, insulation material and packaging materials. Shell also makes lubricants for machinery. The company provides, directly and indirectly, tens of thousands of jobs. The Netherlands is an important location for Shell: the refinery in Rotterdam (Pernis) is the largest in Europe. Here the company produces petrol, diesel and kerosene, which are important for road, water and air traffic.

Shell is one of the 20 largest CO emitters2 in the Netherlands and has ambitious plans to significantly reduce those emissions. Shell wants 3.9 megatons less CO by 20302 emissions, which is 0.5 megatons on top of the coalition agreement. To achieve this, the company will include CO2 collection and storage in depleted gas fields under the North Sea. This technique is called Carbon Capture Storage (CCS). Shell intends to replace more and more fossil fuels in its factories with green electricity and hydrogen. In addition, Shell intends to produce more and more biofuels in the long term.

Minister Adriaansens: “Most people know Shell from the pumping station. But Shell does much more. The company makes raw materials for products that we need every day, such as medicines, detergent, insulation material and latex paint. Moreover, as a future producer and supplier of green hydrogen, the company plays an important role in making the industry more sustainable. Shell is therefore important for the Dutch economy, including for employment. I am pleased that we have made ambitious agreements with each other and that Shell is investing in this itself. I am happy to help with the preconditions.”

Improving the living environment

Shell wants to reduce nitrogen emissions in Pernis and Moerdijk by at least 10%, for example by using less fossil fuels and investing in clean technologies that emit less nitrogen during the production processes. On its own industrial estate, Shell is looking at the use of sustainable work and vehicles such as trucks, forklifts and excavators. Research is being carried out into what further investments are needed to further reduce the emission of nitrogen and other substances such as particulate matter and thus improve the living environment. Shell also has the ambition to process 300 kilotons of plastic waste into new raw materials for the plastics industry. This waste is currently incinerated. This is an important step towards greater use of circular plastics. Shell is building a factory in Moerdijk for this recycling process, which will be commissioned in phases between 2024 and 2027.

State Secretary Heijnen: “I am pleased with the concrete agreements with Shell, one of our largest industrial players, which can therefore also make a major impact. Not only will Shell reduce CO2 emissions and the negative effects on the living environment, they will also contribute to the circular economy. They do this by processing plastic waste into raw materials for the plastic industry: new plastic is made from old plastic. We want and must go in that direction. Every kilogram of plastic that is recycled means less extraction of fossil raw materials.”

Government support

Together with Shell, the government will investigate which potential bottlenecks there are to achieve the agreed goals and how the government can provide support. This concerns, for example, accelerating the granting of permits for sustainability projects, the timely construction of CO2– and hydrogen pipelines, and reinforcement and expansion of the electricity grid. Once this has been achieved for Shell, other companies in the Rotterdam-Moerdijk industrial area will also be able to use the new infrastructure.

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