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Shell makes investment in low-carbon fuel plant

The Canadian arm of fuel and lubricant producer Royal Dutch Shell has agreed to acquire a 40% stake in a plant that makes low-carbon fuels from non-recyclable waste.

A leading company specialising in clean tech, Enerkem, officially announced the new project at the end of last year. Together with Shell and Enerkem, the governments of Canada and Québec – in addition to Hydro-Québec, Proman, and Suncor – have invested in the new plant.

According to Hydrocarbon Engineering, the Country Chair and President of Shell Canada, Michael Crothers, said about the investment:

“Building a commercial-scale low-carbon fuels plant is one of the ways Shell is advancing cleaner fuels and evolving to meet the changing expectations of our customers. Canada is well suited to capitalize on the energy transition thanks to the ingenuity of Canadians and our willingness to work together.”

Crothers also expressed gratitude for the instrumental cooperation that had taken place between both government and industry in realising this project.

The first phase of the project is now due to be commissioned in 2023. When it reaches completion, the plant will produce almost 125 million litres of low-carbon fuel each year from wood waste and waste that is not recyclable. This will save about 200,000 tonnes of waste from going to landfill sites, where anaerobic digestion by microbes can cause methane, which is a potent greenhouse gas, to seep into the atmosphere.

Crothers also pointed out that the Varennes Carbon Recycling plant emphasised Shell’s commitment and capacity to offer its customers waste-based, low-carbon products that are still affordable and of a high quality.

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