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Interpretacion (Shell Sees 2024.... )
Interpretacion (Shell Sees 2024.... )
Demand in the United States is back at 2019 levels while Europe's consumption
has recovered to more than 80% and is on track for full recovery in the next year,
Shell Aviation President Jan Toschka told Reuters on the sidelines of the 38th Asia
Pacific Petroleum Conference (APPEC).
"Asia has been a bit more of a bumpy road with markets opening up and closing
down but mostly we expect Asia in particular, in the next year, to come back, but it
might take another year before we see the full potential of the market," he said.
However, jet fuel supplies are tightening in Europe with the European Union's
sanctions on Russian oil products kicking in on Feb. 5, causing the region to import
more fuel from the U.S., China, India and the Middle East.
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"The market needs to buy from refineries further away ... shipping and rail and all
kinds of distribution are under more stress now with this new kind of routing (of
trade)," Toschka said.
Shell is considering building two more sustainable aviation fuel (SAF) plants in the
United States, as it aims for renewable fuel to account for 10% of its global jet
sales by 2030, Toschka said.
One of the projects would utilise the traditional hydroprocessed esters and fatty
acids (HEFA) technology while Shell hopes to tap on newer technology for the
second.
"There are limits to producing products based on HEFA ... we need to look into
cellulosic material, alcohol to jet, less restricted feedstocks," he said.
Shell may also make a final investment decision for its Singapore SAF plant by end
2022 or early 2023, which is expected to come on stream in 2026 with up to half a
million tonnes of SAF produced in the city state, he said.
"We will be having more than 2 million tonnes of SAF annually by 2030," he added.
SAF from airlines and other sectors such as tech companies, accounting firms and
banks, is gradually growing as companies strive to reduce their carbon footprint,
but it's still at a relatively small percentage of the total aviation fuel market, he
added.
Aviation, accounting for 3% of the world's carbon emissions, is one of the most
difficult forms of transportation to decarbonise.
To meet net zero goals by 2050, the industry would have to spend $50 billion a
year and build 5,000 SAF plants, Toschka said.