Shell starts production at Shell New Energies Junction City, its first US renewable natural gas facility

JUNCTION CITY, Ore., Sept. 28, 2021 /PRNewswire/ -- Shell Oil Products US, a subsidiary of Royal Dutch Shell plc, has successfully achieved startup and production of renewable natural gas (RNG) at its first US biomethane facility, Shell New Energies Junction City in Oregon. The facility utilizes locally sourced cow manure and excess agricultural residues to produce an expected 736,000 MMBtu a year of RNG. This milestone is part of a growing portfolio of developing RNG production and distribution assets supporting low-carbon intensity renewable compressed natural gas (R-CNG) as fuel for heavy-duty, on-road transport.

"Biomethane has a significant role to play in the energy transition, and this achievement advances our strategy as we work to reduce emissions from the fuels and other energy products we sell," said Carlos Maurer, Executive Vice President Sectors and Decarbonization at Shell. "We are excited to offer renewable compressed natural gas as a low-carbon fuel choice for our customers."

Shell is developing additional RNG production facilities to be located directly within operating dairies. Shell Downstream Galloway at the High Plains Ponderosa Dairy in Plains, Kansas and Shell Downstream Bovarius at the Bettencourt Dairies in Wendell, Idaho are part of this expanding biofuels portfolio utilizing cow manure as feedstock.  Together, these two dairy RNG facilities can produce approximately 900,000 MMBtu a year of negative carbon intensity RNG.

Production from Shell New Energies Junction City, Shell Downstream Galloway and Shell Downstream Bovarius is expected to help supply Shell R-CNG fueling sites planned at the company's product distribution complexes in Carson, Van Nuys, Signal Hill, and San Jose, California, and at a terminal in Portland, Oregon, owned by Shell Midstream Partners L.P. R-CNG offers an attractive alternative for fleets to lower their carbon footprint compared to conventional diesel fuel. Providing 100 percent R-CNG for customers would allow these fueling sites to substantially decarbonize product movements out of the terminals.

Notes to editors

• Shell's Powering Progress sets out our strategy to accelerate the transition of our business to net-zero emissions. Becoming a net-zero emissions energy business means that we are reducing emissions from our operations and from the fuels and other energy products we sell, including biofuels and RNG.
• We will continue to drive innovation to provide the cleaner energy that our customers need.
• Working with our partners and suppliers and developing new collaborations are key to delivering Powering Progress.  One such new collaboration is the development of US RNG production facilities within operating dairies, utilizing cow manure as feedstock.
• We are partnering with customers, businesses and others to address emissions in sectors that are difficult to decarbonize, such as road freight.
• About Shell Downstream: Shell's Downstream organization serves more than 30 million customers at about 46,000 retail service stations every day. It manages different Chemicals and Products activities as part of an integrated value chain that trades and refines crude oil and other feedstocks into a range of products, which are moved and marketed around the world for domestic, industrial and transport use. The products we offer customers include conventional fuels for road, aviation and shipping, and low-carbon fuels such as biofuels, RNG, hydrogen and electric-vehicle charging. We also produce and sell lubricants, bitumen, sulphur and petrochemicals worldwide.

Cautionary note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this press release "Shell", "Shell Group" and "Group" are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to Royal Dutch Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ''Subsidiaries'', "Shell subsidiaries" and "Shell companies" as used in this press release refer to entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as "joint ventures" and "joint operations", respectively.  Entities over which Shell has significant influence but neither control nor joint control are referred to as "associates". The term "Shell interest" is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest. 

Shell's operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, Shell's operating plans, outlooks, budgets and pricing assumptions do not reflect our net-zero emissions target. In the future, as society moves towards net-zero emissions, we expect Shell's operating plans, outlooks, budgets and pricing assumptions to reflect this movement.

This press release contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as "aim", "ambition", ''anticipate'', ''believe'', ''could'', ''estimate'', ''expect'', ''goals'', ''intend'', ''may'', ''objectives'', ''outlook'', ''plan'', ''probably'', ''project'', ''risks'', "schedule", ''seek'', ''should'', ''target'', ''will'' and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this press release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell's products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell's Form 20-F for the year ended December 31, 2020 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this press release and should be considered by the reader.  Each forward-looking statement speaks only as of the date of this press release, September 28, 2021. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this press release.

We may have used certain terms, such as resources, in this [report] that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC.  Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. 

SOURCE Shell Oil Products U.S.

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