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Shell Eastern acquires EcoOils

Shell Eastern acquires EcoOils
Forklift operator training at an EcoOils facility (photo courtesy EcoOils).

Singapore-based Shell Eastern Petroleum (Pte) Ltd, a wholly-owned subsidiary of global oil, gas, and energy major Shell plc (Shell), has announced that it has acquired EcoOils Ltd (EcoOils), a waste oil recycling firm.

Malaysia-headed EcoOils Sdn. Bhd (EcoOils) has been at the forefront of repurposing spent bleaching earth – a solid waste of the vegetable oil industry – to produce spent bleaching earth oil, an internationally recognized biofuel feedstock that can be used to produce sustainable low-carbon fuels.

Circular economy

Bleaching earth is a clay material used to absorb impurities during the palm oil refining process. EcoOils uses its technology to recycle this waste material and produce spent bleaching earth oil.

This reduces the amount of waste going into landfill, while the remaining bleaching earth from the oil production cycle is then predominantly reused in other applications, such as cement, roof tiles, and brick manufacturing. This process helps to contribute to a circular economy.

EcoOils has approximately 80 suppliers and over 360 staff. Operations include five plants with a current production capacity of 65 000 tonnes of spent bleaching earth oil per annum.

It is accredited by International Sustainability and Carbon Certification (ISCC), a sustainability certification system covering waste feedstocks.

According to a statement, the acquisition, the value of which has not been disclosed, will include 100 percent of EcoOils’ Malaysian subsidiaries and 90 percent of its Indonesian subsidiary.

It is part of Shell’s ambition to increase the production of sustainable low-carbon fuels for transport, including sustainable aviation fuel (SAF).

To continue supplying customers with the energy products they need into the future, Shell is investing in and producing sustainable low-carbon fuels for transport. This acquisition provides secure access to a recognized, advanced feedstock that can be used at Shell’s biofuels facilities to meet that aim. This acquisition underscores the ongoing transformation of Shell’s business as we strive to provide more low-carbon energy solutions to our customers as part of their decarbonization journey, said Sinead Lynch, SVP for Low Carbon Fuels at Shell.

According to Shell, low-carbon fuels will help to meet the growing demand for decarbonization solutions from customers in the transport sector, including hard-to-decarbonize sectors such as aviation.

SAF currently accounts for around 0.1 percent of global aviation fuel. By 2030 Shell aims to have at least 10 percent of its global aviation fuel sales as SAF.

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