Shell building new pyrolysis oil upgrader unit in Singapore

SINGAPORE (ICIS)–Shell is building a new 50,000 tonne/year pyrolysis oil upgrader unit at its manufacturing site on Pulau Bukom in Singapore, the producer said on Tuesday.

The unit is slated to start production in 2023 and will be the largest in Asia and Shell’s first globally, it said in a statement. Investment details of the project were not disclosed.

The  pyrolysis oil upgrader unit improves the quality of pyrolysis oil, a liquid made from hard-to-recycle plastic waste that would have gone into a landfill, and turns it into a chemical feedstock.

“Shell will use the treated pyrolysis oil to produce circular chemicals that are used in hundreds of useful, everyday products, from tyres to mattresses,” it said.

“This responds to growing customer demand and Shell has already signed its first circular chemicals agreement in Asia with Asahi Kasei,” the company said.

The new investment is a key element in the transformation of the Bukom manufacturing site into the Shell Energy and Chemicals Park Singapore.

The Energy and Chemicals Park will be fully integrated with Shell’s Jurong Island site and together will supply biofuels, circular chemicals, bitumen, advanced lubricants and renewable energy.

Shell is aiming to cut its production of traditional fuels in Singapore, including halving its crude processing capacity, as it is developing plans to produce sustainable aviation fuel and set up a carbon capture and storage hub.

The company is exploring a regional carbon capture and storage (CCS) hub and will work with a range of customers, including the power sector in Singapore, to reduce the CO2 emissions from their existing operations.

“Not only will this help Singapore cut its carbon footprint, CCS will also become a cornerstone of the Shell Energy and Chemicals Park Singapore, enabling Shell to design and produce innovative lower carbon fuels, chemicals, and energy solutions like hydrogen,” the company said.

The company is also planning to build a new 550,000 tonne/year biofuels facility in Singapore which is still subject to a final investment decision.

The planned facility will use hydrogen made from renewable resources and bio-feedstock, such as used cooking oils and animal fats, which can be turned into low-carbon fuels, such as sustainable aviation fuel (SAF), renewable diesel for road transport or renewable chemicals.

Shell in November 2020 outlined a 10-year plan aiming at cutting its own CO2 emissions in Singapore. The plan aims to cut its emissions from its operations by half in 2030 from 2016 levels.

Shell aims to annually process 1m tonnes/year of plastic waste globally by 2025.