Shell Singapore outlines path to transform its business in the country
Nov 10, 2020
Shell Singapore wants to transform its business in the country to thrive through the energy transition.
To this end, it has outlined a 10-year plan for how the company could make significant investments in people, assets and capabilities to repurpose its core business and aim to cut its own CO2 emissions here by about a third within a decade.1 This builds on Shell’s overarching ambition to be a net-zero emissions energy business by 2050 or sooner, in step with society and with customers. This is equivalent to planting about four million trees, or an addition of about 60% of all the urban trees in Singapore.2
“We welcome Singapore’s goal towards net zero emissions as a country. As a company which has had a long presence in this country, Shell Singapore has a key role to play in supporting the Government’s ambitions. Today, our extensive presence in Singapore’s energy sector carries with it a carbon footprint. Our businesses in Singapore must evolve and transform, and we must act now if we are to achieve our ambition to thrive through the energy transition. Our decisive action today will help Shell in Singapore stay resilient and build a cleaner, more sustainable future for all of us,” said Aw Kah Peng, Chairman of Shell Companies in Singapore.
We will accelerate this transition through three pillars:
- Repurpose our core by building on our strengths of an integrated business here and focus our manufacturing assets to provide more energy transition resilient products;
- Provide low-carbon solutions for customers in the sectors which are also important pillars of Singapore’s economy – power, mobility, shipping, aviation, trading; and
- Partner with key stakeholders to bring about sustainable change.
We are transforming our manufacturing business, making it fit for the new future, where our Pulau Bukom Manufacturing Site will be one of Shell’s approximately six energy and chemicals parks. Bukom will pivot from a crude-oil, fuels-based product slate towards new, low-carbon value chains. We will reduce our crude processing capacity by about half and aim to deliver a significant reduction in CO2 emissions. Repurposing Bukom will not only involve significant changes in our refinery configuration, but also increased investments in our assets, and critically, in our people. A site-wide digitalisation programme that aims to transform the way we operate is already underway. Work has also commenced to study the production of products that are resilient to the energy transition, such as biofuels, and more specialities, like bitumen. We are also looking at the possibility of different future feedstocks that are based on greater circularity and renewable raw materials, such as recycled chemicals.
The changes that will have to take place in our businesses will have a corresponding effect on our staff numbers. As Bukom transforms and becomes smaller and smarter, the resizing of operations will result in fewer jobs but more highly skilled jobs as digitalisation and automation progress. This will be a multi-year journey.
We are evolving our business to drive decarbonisation and partnering with key stakeholders on broader energy transition initiatives:
- We are looking to expand our solar footprint, including looking into utility-scale solar generation. This builds on the more than 3MWp we have already built at our Pandan distribution terminal, Seletar aviation site and Tuas Lubricants Plant.
- By 2030, we aim to have an extensive network of electric vehicle charging options for our customers, all within a short drive, from their home, workplace or when they are on the go. We believe there are opportunities to redefine mobility in Singapore, to be cleaner and smarter.
- In Shipping, our LNG bunkering joint venture, FueLNG, will scale up with the arrival of Singapore’s first bunkering vessel in late 2020, contributing to Singapore’s ambition to decarbonise shipping.
- Given our extensive global experience trading environmental products, we are engaging our customers in Singapore to provide carbon neutral solutions to meet their climate objectives.
- We are working with the National Environment Agency on a joint feasibility study for the set-up of waste segregation facilities and plastic pyrolysis plants to recycle Singapore’s plastic waste.
“Singapore is a key hub for Shell. These decisions show how determined we are to remain a part of Singapore’s energy future, just as we have been partners in economic development over the decades,” said Huibert Vigeveno, Downstream Director and member of the Executive Committee of Shell. “The transformation of our business in Singapore, and in particular our largest refinery on Pulau Bukom into one of our approximately six energy and chemicals parks, is crucial to Shell's ambition of becoming a net-zero emission energy business by 2050 or sooner, in step with society and our customers.”
The Pulau Bukom Manufacturing Site, one of Shell’s approximately six energy and chemicals parks, was selected as the first Shell site globally to pilot a Digital Twin technology.
By 2030, we aim to have an extensive network of electric vehicle charging options for our customers, all within a short drive, from their home, workplace or when they are on the go.
Head, Southeast Asia and South Asia Media Relations
Shell Spokesperson, Asia-Pacific
Shell Spokesperson, Asia-Pacific
Notes to Editors
- Number of trees is based on a ‘global average tree’, of approximately 20cm diameter at breast height. The quantity of carbon stored in such a tree is estimated from peer-reviewed studies to estimate the global tree count (Crowther et al. 2015) and global carbon storage in tree vegetation (Erb et al. 2017): ~3 trillion trees and ~400 Gt of carbon. The actual quantity of carbon stored in a specific tree is dependent on species, soil, climate, maturity and other factors, which are not fully captured here.
- Shell has announced a new ambition to be a net-zero emissions energy business by 2050, or sooner if possible, in step with society. We will work towards this ambition in three ways:
- We have significantly raised our Net Carbon Footprint ambition so that it is in step with the large sections of society that want to achieve a 1.5° Celsius future. Shell’s long-term ambition is to reduce the Net Carbon Footprint of the energy products we sell by 65% by 2050, instead of 50%. And our medium-term ambition is to reduce the Net Carbon Footprint of the energy products 30% by 2035, in step with society, instead of 20%.
- We also have a new ambition to achieve net-zero operational emissions (Scope 1 and 2) by 2050 or sooner, which includes the emissions associated with manufacturing and bringing Shell’s energy and non-energy products to the market.
- Finally, as a business that supplies energy, we will work with sectors which use energy to help identify and enable decarbonisation pathways for them to follow towards a net-zero emissions future. And for those customers who still have emissions as they near 2050, we will work ever more intensely with them to find a way to mitigate those emissions.
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1 The reduction is in Scope 1 and 2 emissions and for 100% Shell-controlled operations in Singapore. The reduction is measured against the baseline year of 2018.
2 Singapore has a total of about seven million urban trees, of which six million of them are managed by the National Parks Board. ‘Urban trees’ do not include trees in the nature parks and reserves. See Notes to the Editor at the end of the release for background on the analogy of trees.