Shell and Worley Drive Sustainable Innovation with Base Oil and Hydrogen Projects in Germany

The Latest in Hydrogen Projects – Transformation at Energy and Chemicals Park Rheinland.

In a significant leap towards sustainability, Worley and Shell have embarked on a transformative journey at the Energy and Chemicals Park Rheinland in Germany. This collaboration aims to convert a hydrocracker into a cutting-edge base oil production unit and establish a renewable hydrogen production facility, marking a pivotal step in reducing carbon emissions and advancing Shell’s net-zero ambitions.

Hydrocracker Conversion: A Modern Approach to Base Oils

At the heart of this transformation is the conversion of a hydrocracker, a crucial component in oil refining. Hydrocrackers break down heavy crude oil feedstocks into more valuable products like diesel and jet fuel by using hydrogen under high pressure and temperature. By repurposing this unit at the Wesseling site, Shell plans to halt crude oil processing by 2025, instead focusing on producing high-quality base oils. These oils are integral to manufacturing lubricants such as engine and transmission oils.

Significantly, the new base oil production unit will boast an impressive capacity of around 300,000 tonnes annually. This output will meet approximately 9% of the European Union’s demand and 40% of Germany’s, highlighting the project’s substantial impact on the regional market.

Renewable Hydrogen Production: A Step Towards Decarbonization

In addition to the base oil project, Worley is aiding Shell in establishing a renewable hydrogen production facility through the REFHYNE II project. This initiative includes the installation of a 100 MW electrolyzer, capable of producing up to 44,000 kilograms of renewable hydrogen daily. This hydrogen will play a crucial role in decarbonizing Shell’s operations, with potential future applications in reducing industrial emissions in the surrounding region.

The REFHYNE II project builds on the success of REFHYNE I, which commenced operations in 2021. With a final investment decision secured in July 2024, the project signifies Shell’s commitment to a cleaner, sustainable energy future.

Strategic Partnership and Market Impact

This transformation underscores the strategic partnership between Worley and Shell, leveraging Worley’s extensive engineering and sector expertise. André van Drunen, Managing Director Germany at Worley, emphasized the importance of this collaboration, stating, “Our deep domain knowledge of Shell’s asset, local delivery capabilities, and sector expertise enables us to support Shell’s transformation efforts and investments.”

Marijn Bezuijen, Project Director Rheinland, highlighted the long-term vision, “The Energy and Chemicals Park Rheinland is on a transformation journey to help Shell become a net-zero emissions company by 2050.”

Set to commence operations in the latter half of the decade, these projects represent a significant step towards sustainability and innovation. By reducing carbon emissions by approximately 620,000 tonnes annually and enhancing the production of renewable hydrogen, this collaboration between Worley and Shell is poised to set new standards in the energy sector, reinforcing Shell’s leadership in the transition to a low-carbon future.