Sustainable biofuels
Shell鈥檚 range of sustainable biofuels are key to decarbonising our own product offerings while supporting our customers in their respective transitions to net zero.
The role of biofuels in the energy transition
Shell鈥檚 ambition is to become a net-zero emissions energy business by 2050. The biofuels produced by our Low Carbon Fuels (LCF) business are an essential lever in achieving this ambition, since they can help customers decarbonise operations across sectors where the energy density of fuels remains key 鈥� such as aviation, marine and heavy-duty road transport.
Products
Sustainable aviation fuel (SAF)
Sustainable aviation fuel (SAF) is an alternative fuel to fossil-based jet fuel that can help to significantly reduce emissions from flying.
It has the potential to reduce lifecycle emissions by up to 80% when used neat, compared with conventional aviation fuel.1 SAF is also a drop-in fuel, which can be blended at a ratio of up to 50% with conventional jet fuel for use in aircraft operating today.2
RNG products
Renewable natural gas (RNG), or biomethane, is chemically identical to, and therefore directly interchangeable with, conventional natural gas. Added directly to existing natural gas grids, biomethane can be used in transmission and distribution infrastructure. Thus, it can be or liquified for heavy-duty transport, used for heating and cooking, and for combined heat and power (CHP) generation.
Renewable diesel (HVO)
Renewable diesel is a fuel known by many names, including HVO and HEFA, and can be used as a 'drop in' fuel for diesel. This means it can act as a complete replacement for fossil diesel or be blended into fossil diesel at any ratio. Shell Renewable Diesel offers up to 90% less carbon dioxide equivalent (CO2e)3 emissions compared to B7 diesel4 on a life cycle basis.5
Production pathways and technologies
Not only does Shell produce high quality fuels from sustainable sources today, but we are also expanding existing production pathways while developing and scaling new, advanced biofuels technologies for the future. This means working closely with technology companies鈥�, governments and customers to grow demand, support policy initiatives, commercialise new technologies and build a solid commercial ecosystem for our products.
Industries where biofuels can make an impact
What role does policy play in biofuels production?
Regulators have an important role to play in supporting the uptake of biofuels and ensuring their full potential can be realised as part of a successful, and sustainable, energy transition. For instance, government support will be essential in supporting the start-up and scale-up of new technologies, creating the market for these fuels through mandates and targets, and allowing for feedstock flexibility under strict sustainability guidelines. As part of this ecosystem, Shell consistently calls on governments to:
- Support capital investment in low-carbon projects to assist supply-side dynamics.
- Put in place mandates and low-carbon fuel standards to incentivise biofuels adoption.
- Develop short-to鈥攎edium-term incentives to support affordability until the industry can scale.
- Allow a wider use of feedstocks, provided they meet sustainability guidelines.
- Define clear sustainability standards for biomass supply, covering the full supply chain.
Feedstock
For biofuels to be accepted as part of the energy transition, they need to be produced sustainably and lead to significant reductions in carbon dioxide (CO2) emissions. To support this aim, Shell has put strict internal sustainability policies in place to help guide which biofuel feedstocks we purchase. Beyond this, we are developing more advanced technologies to process feedstocks and transform them into biofuels and e-fuels.
For instance, Shell is investing in projects to de-risk key feedstocks, such as agricultural and animal wastes. We are also exploring feedstocks that do not compete with food and feed production, such as intermediate crops, catch and cover crops, and crops grown on degraded, abandoned or contaminated land. While many of these are currently not available at scale, we are working with customers and suppliers to develop robust supply chains.
Key factors influencing feedstock sustainability
To meet the demand for biofuels through sustainable feedstock growth, our Low Carbon Fuels business takes into consideration many different dimensions of sustainability when determining which biofeedstocks to bring into our portfolio 鈥� from their environmental to societal to economic impact. The table below breaks out these categories further. Our commitment lies in ensuring that we consistently consider these factors to make informed and responsible decisions when procuring biofeedstocks, upholding our commitment to sustainability across all dimensions. Any feedstocks considered high risk from a human rights, biodiversity or release of carbon stock perspective are always certified by credible third-party sustainability initiatives.
Related content
Disclaimer
1 International Air Transport Association 鈥淒eveloping Sustainable Aviation Fuel (SAF)鈥�
2 International Air Transport Association 鈥淔act Sheet 2 Sustainable Aviation Fuel: Technical Certification鈥�
3 CO2e carbon dioxide equivalent refers to CO2, CH4, N2O.
4 The reduced CO2e emissions are calculated by comparing to a GHG baseline intensity of 90.2 gCO2e/MJ on a Well-to-Wheel basis, which is representative of a European Union market B7 diesel. The carbon intensity of the B7 diesel is calculated by Shell using emission factors from the JEC Well-to-Tank report v5. (European Commission, Joint Research Centre, Prussi, M., Yugo, M., De Prada, L., et al., JEC well-to-tank report V5: Publications Office, 2020). The market representative diesel baseline is calculated by Shell using emission factors issued by the relevant government or regulatory bodies, externally recognized lifecycle analysis (LCA) models and databases; and internal Shell studies, which include calculations to estimate the biofuel content of Shell-branded fuels and are subject to change from time to time.
5 The full life-cycle assessment of a product's CO2e emissions includes emissions associated with feedstock production, feedstock transport, fuel production, fuel transportation and distribution as well as end use and/or combustion.