Royal Dutch Shell (Shell) has announced plans to reduce its crude processing capacity by half at its Singapore hub and reduced fuel exports, as the company transitions from fossil fuels to low-carbon and renewable fuels. Shell will develop a pyrolysis oil upgrader at its petrochemical complex in the country to convert plastic waste into chemical feedstock. The company is also planning the development of a carbon capture and storage (CCS) regional hub and a biofuels plant with an annual capacity of 550,000 tonnes at the Pulau Bukom energy and chemical park. Investment details about the facility have not been released yet.

Shell also intends to construct two chemical conversion plants in Asia to transform waste plastics into pyrolysis oil for the Shell Energy and Chemical Park Singapore. The company is considering investing in a plant to manufacture biofuels from waste and vegetable oils to reach its global goal of producing roughly 2 million tonnes of sustainable aviation fuel per year by 2025.

These initiatives are part of Shell’s target of reducing emissions from daily operations by half by 2030, compared to 2016 levels on a net basis. Shell has also committed to lower its net carbon impact by 45 percent by 2035 and halve global emissions by 2030.