Shell, the ultimate sin stock, is trying to convince us that they’re oh-so-green now.

Posted by John Donovan: 12 Sept 24

Oh, look, Shell is making another bold attempt to fool us all into thinking they care about the environment. The latest PR stunt? They’ve hired Australian energy services provider Worley to help transform one of their oil plants in Germany into a base oil production unit—oh, and by the way, it’ll also produce a little hydrogen, because, you know, greenwashing is in vogue these days.

Worley’s grand task? First, convert Shell’s Energy and Chemicals Park Rheinland near Cologne into a sustainable oil production paradise that’ll somehow cover 9% of the EU’s and 40% of Germany’s base oil needs. That’s right, folks: Shell is “going green” by—wait for it—producing more oil. What a time to be alive.

This magical transformation includes repurposing the on-site hydrocracker (that’s industry speak for “keeping the same polluting junk, just adding a few bells and whistles”) and electrifying the plant. The cherry on top? Shell promises this will cut their own emissions by 620,000 tonnes annually. Because, you know, it’s not like the rest of their operations are continuing to spew out emissions like a 1970s factory on steroids.

The Hydrogen Hype: Refhyne II

Meanwhile, Shell is also dabbling in renewable hydrogen production with the so-called Refhyne II project, which is about as “green” as a plastic straw wrapped in a lettuce leaf. Worley’s tasked with doing the heavy lifting (early front-end engineering and design, detailed design, integration services—you know, all the stuff that makes it sound like they’re actually doing something revolutionary).

Refhyne II will install a 100-MW electrolyser capable of producing a whopping 44,000 kg of renewable hydrogen every day. Impressive, right? Until you remember that Shell’s main business is still fossil fuels, and they’re the poster child for “sin stock” investing—oil, gas, and now just a sprinkle of hydrogen for flavor.

This is supposedly the follow-up to Refhyne I, where Shell installed a much smaller 10-MW electrolyser in 2021. Wow, what progress! From 10 MW to 100 MW—at this pace, they’ll save the planet sometime in the next millennium. The final investment decision (FID) has been made, and they’re targeting completion by 2027. Because, obviously, nothing says urgency like planning to decarbonize by the time your grandkids are in college.

And Don’t Forget Holland

Not content with just one PR spectacle, Shell is also working with Worley on the 200-MW Holland Hydrogen I (HHI) project in the Netherlands. Because if you’re going to greenwash your image, you might as well go all in, right?

So, here we have it: Shell, the ultimate sin stock, is trying to convince us that they’re oh-so-green now. All the while, they’re still pulling oil out of the ground, selling gas to anyone who’ll buy, and leaving the planet worse off. But hey, at least they’ll have some shiny hydrogen plants to point to when the pitchforks come out.

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, and shellwikipedia.com, are owned by John Donovan. There is also a Wikipedia segment.