Shell to shut down a German oil refinery to reduce carbon footprint

Shell announced on Friday its plan to close its oil refinery in Wesseling, Germany, by 2025 and transform it into a facility producing lubricant feedstock. The hydrocracker unit will be converted into a unit producing Group III base oils, primarily used in engines, with a yearly capacity of 300,000 metric tons. This accounts for 9% of the current EU demand and 40% of Germany’s demand for base oils. The shift is anticipated to cut Shell’s operational carbon emissions by approximately 620,000 metric tonnes annually.

Shell is striving to achieve net-zero greenhouse gas emissions by 2050, encompassing emissions from customer fuel usage. Additionally, the company is planning to sell its refining and petrochemicals site in Singapore. Crude oil processing at the Wesseling site will conclude in 2025, while operations will continue at the Godorf refinery. The new production facility in Wesseling is set to begin operations in the second half of this decade. Shell’s Energy and Chemicals Park Rheinland, comprising both Wesseling and Godorf sites, currently has a capacity of over 17 million metric tonnes of crude oil per year. Since 2020, Shell has divested five refineries, closed one, and converted another into a terminal.