Shell is one of the world’s largest distributors of first-generation transport biofuels, selling over six billion litres in 2008 and spending several billion dollars purchasing biofuels to blend with Shell fuels. We are an active participant in developing strong industry standards – with groups such as the Roundtable for Sustainable Biofuels.
Biofuels for transport are usually made from biomass. The most widespread sources of this are sugar cane, corn or wheat that produce ethanol. A second type, known as fatty acid methyl ester, is made from rapeseed, palm oil or soya beans. Standard vehicle engines can only use fuel with a blend of about 5-10% ethanol or FAME. The organic raw material used for biofuels has recently absorbed CO2. Some next-generation biofuels can reduce life-cycle CO2 emissions by up to 90% compared to fossil fuels.
One constraint of first-generation biofuels is that they can compete with food crops for available land. In the long-term, new feedstocks, processes and fuels will need to be developed to satisfy increasing demand. Our biofuels research and technology specialists work in centres in India, the Netherlands, the UK and the USA. We have partnerships with private technology firms and research agreements with leading academic institutions.
In 2002, Shell invested in Iogen Corporation in Canada, and we increased our stake in the company to 50% in 2008. Together we are developing the technology to produce cellulose ethanol from straw using enzymes. This next-generation biofuel can be used as a blend in today’s vehicles. The world’s first commercial demonstration plant opened in Ottawa in 2004 and we are assessing the feasibility of a full-scale commercial plant.
Since 2005, Shell has been working with CHOREN Industries in Germany to create liquid transport fuel from woodchips. CHOREN gasifies the biomass, using the Shell Middle Distillates Synthesis process. This biofuel can be blended with diesel and used in unmodified diesel engines, offering substantially reduced local emissions. The world’s first commercial demonstration plant using this process is scheduled to open in Freiberg in 2009.
Since 2007, Shell has partnered with US company Codexis to develop new super enzymes to convert biomass to fuel. Research will focus on adapting enzymes to improve the conversion of a range of raw materials into high-performance fuels. It will help Shell in our exploration of a number of non-food bio materials, new conversion processes and alternative fuel products.
Also in 2007, Shell formed joint venture company Cellana, which operates a pilot facility in Hawaii to grow marine algae and produce vegetable oil for conversion into biodiesel. Algae hold great promise because they grow very rapidly, are rich in vegetable oil and can be cultivated in ponds of seawater, minimising the use of fertile land and fresh water.
Since March 2008, Shell has partnered with Virent Energy Systems in the USA on a research project to convert plant sugars directly into petrol and diesel, rather than ethanol. The collaboration could herald the availability in the future of biofuels that can be blended in higher proportions in standard petrol engines.
