Shell is to invest in a plastic pyrolysis oil upgrade plant in Singapore and has signed a strategic cooperation and offtake agreement for pyrolysis oil made by Dutch cleantech firm Pryme in Rotterdam in the Netherlands.
The deals form part of Shell’s strategy to commit to low carbon and sustainable initiatives and will help to advance the circular economy. Mixed waste plastic is difficult to recycle and usually ends up in landfill. However, it can be turned into a liquid by heating to high temperatures in the absence of oxygen, and this liquid can be used as a feedstock for new products in a similar way to crude oil.
The new pyrolysis upgrader in Pulau Bakom, Singapore will be the largest such unit in Asia and Shell’s first. It is scheduled to begin production in 2023 and will treat 50,000 tpa of plastic pyrolysis oil. Shell will use the upgraded pyrolysis oil to produce chemicals suitable for a variety of consumer products including tyres and mattresses. The company said this is in response to growing customer demand, and it has already signed its first circular chemicals agreement in Asia with Asahi Kasei.
The investment is part of Shell’s ongoing works to develop the Bukom site into the Shell Energy and Chemicals Park Singapore. It will be fully integrated with Shell’s Jurong Island site and will focus on low carbon and sustainable solutions, including biofuels, circular chemicals, bitumen, advanced lubricants, and renewable energy. Shell Singapore has pledge to reduce its emissions by half by 2030, compared to 2016 levels. It has cut its crude processing capacity, plans to produce sustainable aviation fuel and is developing a carbon capture and storage hub.
“Shell’s strategy is to accelerate our transformation into a provider of net-zero emissions energy products and services. As a key global hub for Shell, Singapore has a very important role to play in this. Together, these investments will help us to cut carbon emissions at our operations and provide the low-carbon and circular solutions that our customers want, in sectors ranging from chemicals to automotive to aviation,” said Shell downstream director, Huibert Vigeveno, speaking at the ground-breaking ceremony for the pyrolysis oil upgrader unit.
Pryme, meanwhile, will supply Shell with pyrolysis oil from its new plastics pyrolysis plant, which is scheduled to begin operations in 2022 and will treat 60,000 tpa of plastics waste. Shell will use the oil as feedstock in its Moerdijk cracker in the Netherlands, and its Rheinland cracker in Germany. The agreement also includes output from Pryme’s proposed second pyrolysis plant, which would have a production capacity of 350,000 tpa and start up in 2024.
The two companies will first cooperate to test and evaluate pyrolysis liquid samples from Pryme’s test plant in Ghent, Belgium, to determine the optimal properties for use in the crackers.
“With increasing demand for circular chemicals from customers, our agreement with Pryme enables us to significantly grow volumes as early as next year. The agreement builds on Shell’s ambition to recycle one million tonnes of plastic waste per year in our global chemicals plants by 2025,” said Thomas Casparie, SVP Northwest Europe, Shell Chemicals and Products.
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