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Shell becomes one of the first aviation lubricants suppliers to tackle lifecycle carbon emissions across its product portfolio

Shell Aviation (“Shell”) has introduced a new lifecycle sustainability approach for its AeroShell aviation lubricants to avoid, reduce and then compensate for lifecycle carbon emissions, improving aircraft performance while helping customers meet their net-zero greenhouse gas (GHG)1 or carbon emissions ambitions.

In alignment with Shell’s target to become a net zero-emissions energy business by 2050, AeroShell has confirmed its commitment to continue working to avoid and reduce carbon emissions by optimising production and product design, embedding circularity into product packaging, improving the energy efficiency of facilities, and using renewable energy to reduce emissions across the supply chain. Shell will then purchase high-quality2 , independently verified carbon credits to compensate for carbon emissions which are not currently being avoided or reduced.

The new lifecycle sustainability approach will be included as standard across the full AeroShell product range, including turbine engine oils (TEOs), piston engine oils (PEOs), greases and fluids, for both the commercial airline and general aviation markets.

Vincent Begon, General Manager Aviation Lubricants, Shell Aviation, said: “While SAF and fuel efficiency are rightly highlighted as key levers to decarbonise aviation, for the aviation sector to reach net zero it must address emissions from all aspects of aircraft operations in order to decarbonise – so this means lubricants too, even if they do represent a small proportion of aviation emissions when compared to jet fuel. It is a real point of pride that AeroShell will now support our customers in maintaining aircraft performance while taking action on decarbonisation.”

“The fundamentals of lubricants mean that they are challenging to decarbonise, so a lot of effort has gone into developing this new proposition, including working with Original Equipment Manufacturers (OEMs), distributors and other key players across the lubricants industry. This is an important development for our aviation lubricants business, and one that we are confident will provide genuine value for our customers as we support them in decarbonising.”

Pilatus Aircraft Ltd, a Swiss company developing, producing and selling aircrafts to global customers – many of which are using AeroShell products – are in support of AeroShell’s new lifecycle sustainability approach.

Dr Urs Thomann, Director Technologies, Processes and Sustainability, Pilatus Aircraft Ltd commented: “Shell has a strong track record of developing lubricants that deliver on safety and performance, so it is fantastic to see them continue to push the boundaries of the lubricants market, this time in the name of decarbonisation.”

Across Shell’s entire global lubricants business3 the measures implemented to avoid and reduce carbon emissions include:

  • Increasing the use of re-refined base oils.
  • Using more recycled content in our product plastic packaging, in support of Shell’s ambition of reaching 30% PCR use by 2030.
  • Taking out over 55 KTonnes CO2e of Scope 1 & 2 GHG emissions from our global lubricants operations, reducing our production step carbon intensity by more than 45% since 20164.
  • Over 50% of the electricity imported to our Shell Global Lube Oil Blending Plants (LOBPs) now coming directly from renewable sources through the installation of solar PV panels and green power contracts, or indirectly using renewable energy credits (RECs).
  • Installing solar PV panels at 11 of our lubricant blending plants, expecting to generate over 11,000 MWh of electricity annually, and can result in the avoidance of GHG emissions of over 6,000 tonnes CO2e per year.
  • Optimising delivery networks to reduce road transport by 1.3 million miles since 2021.

This upgrade to the AeroShell offering marks the latest step in Shell Aviation’s efforts to decarbonise in alignment with Shell’s net zero-emissions target which includes increasing low and no carbon offering to customers.

Enquiries

Shell Media International: +44 207 934 5550

Notes to editors

  • The full AeroShell portfolio will be covered by the lifecycle sustainability strategy, including market leading products such as AeroShell Turbine Oil 560 (TEO), AeroShell Ascender (TEO), AeroShell Oil W100 (PEO), AeroShell Oil W 15W-50 (PEO), AeroShell Grease 33 (grease), and AeroShell Fluid 31 (fluid).
  • Our growing portfolio includes Cordillera Azul National Park in Peru, which has not only prevented 25.2 million tonnes of carbon being released into our atmosphere,but safeguards 39 threatened species. One carbon credit is equal to 1 tonne of CO2 emissions avoided or removed.
  • CO2 compensation does not imply that there is no environmental impact from the production and use of the product as associated emissions remain in the atmosphere. CO2 compensation is not a substitute for switching to lower emission energy solutions or reducing the use of fossil fuels. Shell businesses focus first on emissions that can be avoided or reduced and only then, compensate the remaining emissions.
  • “C2 compensated” indicates that Shell will engage in a transaction where an amount of CO2 equivalent to the value of the remaining CO2e emissions associated with the raw material extraction, transport, production, packaging, distribution, loss in use and end-of-life of the product are compensated through the purchase and retirement of carbon credits generated from CO2 compensation projects. Although these carbon credits have been generated in accordance with international carbon standards, the compensation may not be exact.

About Shell Aviation

Shell has set a clear target to become a net-zero emissions energy business by 2050, with Shell Aviation aligned with this ambition. Sustainable aviation fuel (SAF) is a key lever to achieve this. We also aim to be a SAF producer from 2025, and we’re investing in promising technologies to accelerate other production pathways such as Alcohol to Jet (AtJ) technology.

Our production activities, together with our supply deals, positions us strongly to support the decarbonisation of aviation.

Further information can be found at Shell Aviation.

Cautionary Note

The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this press release “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this press release refer to entities over which Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. “Joint ventures” and “joint operations” are collectively referred to as “joint arrangements”. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

Forward-Looking Statements

This press release contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition”, ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, “milestones”, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this press release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Shell plc’s Form 20-F for the year ended December 31, 2022 (available at www.shell.com/investor and ). These risk factors also expressly qualify all forward-looking statements contained in this press release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this press release, 13 July 2023. Neither Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this press release.

Shell’s net carbon intensity

Also, in this press release we may refer to Shell’s “Net Carbon Intensity”, which include Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “Net Carbon Intensity” is for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s net-Zero Emissions Target

Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and Net Carbon Intensity (NCI) targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target and 2035 NCI target, as these targets are currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.

*GHG or CO₂e (CO₂ equivalent) refers to CO₂, CH₄, N₂O.
2 Our projects are independently verified and assessed using approved greenhouse gas accounting methodologies, all meet external carbon standards (e.g. Verra, the American Carbon Registry, Gold Standard, or Chinese Certified Emission Reduction), and in addition, go through Shell’s own due diligence.
AeroShell forms a small part of Shell’s global Lubricant’s business (less than 1% of global production volume).
4 Based on full year 2022 data.

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