Shell acquires EcoOils to help secure low-carbon feedstock for biobased diesel production
Shell Eastern Petroleum (Pte) Ltd., a wholly owned subsidiary of Shell plc, announced Nov. 1 that it has acquired EcoOils Ltd., a waste oil recycling firm.
This acquisition is part of Shell’s ambition to increase production of sustainable low-carbon fuels for transport, including sustainable aviation fuel (SAF).
The acquisition will include 100 percent of EcoOils’ Malaysian subsidiaries and 90 percent of its Indonesian subsidiary.
EcoOils uses recycling technology to reduce waste going into landfills and produce spent bleaching-earth oil, an internationally recognized biofuels feedstock that can be used to produce sustainable low-carbon fuels.
“To continue supplying customers with the energy products they need into the future, Shell is investing in and producing sustainable low-carbon fuels for transport,” said Sinead Lynch, Shell’s senior vice president for low-carbon fuels. “This acquisition provides secure access to a recognized, advanced feedstock, which can be used at Shell’s biofuels facilities to meet that aim. This acquisition underscores the ongoing transformation of Shell’s business as we strive to provide more low-carbon energy solutions to our customers as part of their decarbonization journey.”
Low carbon fuels will help to meet growing demand for decarbonization solutions from customers in the transport sector, including hard-to-decarbonize sectors such as aviation.
Sustainable aviation fuel currently accounts for around 0.1 percent of global aviation fuel.
By 2030, Shell aims to have at least 10 percent of its global aviation fuel sales as SAF.
Bleaching earth is a clay material used to absorb impurities during the palm-refining process.
EcoOils uses its technology to recycle the waste material and produce spent bleaching-earth oil, an advanced biofuels feedstock that can then be used to produce sustainable low-carbon fuels.
This reduces the amount of waste going into landfill, while the remaining earth from the oil-production cycle is then predominantly reused in other applications, such as cement, roof tiles and brick manufacturing. This process helps to contribute to a circular economy.
Spent bleaching-earth oil is an advanced biofuels feedstock, derived from an accepted waste product, and is recognized by the European Union’s Renewable Energy Directive II (Annex IXa).
This acquisition gives Shell secure, long-term access to an internationally recognized feedstock that will enable the production and supply of low-carbon fuels, like sustainable aviation fuel, to customers.
EcoOils has approximately 80 suppliers, over 360 staff and its operations include five plants with a current production capacity of 65,000 metric tons of spent bleaching-earth oil per year.
It is accredited by International Sustainability and Carbon Certification, a sustainability-certification system covering waste feedstocks.
Shell’s acquisition includes 100 percent of EcoOils. EcoOils has subsidiaries in Malaysia and Indonesia and Shell will acquire 100 percent of the subsidiaries in Malaysia and 90 percent of the subsidiary in Indonesia.