Oil giant Shell has announced plans to shut down its Wesseling oil refinery in Germany by 2025 to reduce its carbon emissions and transition to low-carbon energy.

With a crude oil processing capacity of 7.5 million tons annually, the refinery’s closure is expected to cut Shell’s operational carbon emissions (Scope 1 and 2) by around 620,000 tons annually. 

This ​​represents ​a ​significant ​step ​in Shell’s ​​target of ​achieving ​net ​zero ​emissions ​​across all ​its ​operations ​and ​the ​fuels ​it ​sells ​by ​2050​.​​

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• Shell shut down its Wesseling, Germany, oil refinery by 2025 as part of its net zero emissions strategy.

• The ​​​refinery ​​will ​be ​converted ​to ​a lubricants ​​production ​facility​, ​cutting ​Shell’s emissions ​by ​​620,000 ​tons ​annually​.​

• ​Closure ​represents ​Shell’s ​accelerated ​transition ​from ​​oil ​to ​low-carbon ​energies ​like ​biofuels ​and ​​hydrogen​.​​

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Shell to Shut Down German Oil Refinery in Move Towards Low-Carbon Future

Instead of refining crude oil, the Wesseling facility will be repurposed to produce lubricant feedstocks. 

The site’s hydrocracker unit will be converted into a production unit for Group III base oils, primarily used as engine lubricants.

The new lubricants production facility will have an annual capacity of 300,000 metric tons, meeting around 9% of current EU demand and 40% of Germany’s domestic market for base oils. 

Creating a dedicated lubricants site aligns with Shell’s strategy to concentrate refining at flagship locations like the company’s Godorf refinery at the Energy and Chemicals Park Rheinland near Cologne.

The ​​closure ​of ​the ​Wesseling refinery ​highlights ​the ​accelerating ​pace ​of ​change ​sweeping ​the ​oil ​industry ​as ​companies adapt ​their ​​asset ​portfolios and ​operations ​​for ​a low​-carbon ​future​​​​. 

Shell and other majors like BP are transitioning from oil to cleaner energies like biofuels, hydrogen, wind, and solar power.

At​​​ ​​the ​same ​time​, ​improving energy ​efficiency ​​across ​global ​supply ​​chains is ​crucial ​​to ​lowering ​emissions in ​​the ​transportation sector​​​​. 

Producing high-performance synthetic lubricants that reduce engine friction can directly contribute to this goal.

The new lubricants plant at Wesseling is expected to begin operations in the second half of this decade. 

It​​ ​represents ​one ​of ​the ​numerous ​steps ​Shell ​takes ​to decarbonize ​its ​portfolio ​of ​assets ​in ​Europe ​and ​globally gradually ​​​​​.

Other recent changes by Shell include divesting five refineries since 2020, closing one site, and converting another into a terminal. 

The​​ ​company also ​plans ​to ​sell ​its ​refining and ​petrochemical ​facilities ​in ​Singapore​.​

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​The ​journey ​to ​net ​zero ​will ​require ​continued ​focus ​and investment ​from ​Shell ​and ​its ​industry ​peers​. ​

​However​, the ​closure ​of ​the ​Wesseling ​refinery ​demonstrates ​that the ​oil ​age ​is ​drawing to ​a ​close ​as ​​new, ​cleaner ​energy ​technologies ​gain ​momentum​.​​

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