(Alliance News) - Shell PLC on Friday said it has decided to convert the hydrocracker of the Wesseling site at the Energy & Chemicals Park Rheinland into a production unit for Group III base oils.

The oils will be used in making high-quality lubricants such as engine and transmission oils.

Crude oil processing will end at the Wesseling site by 2025 but will continue at the Godorf site, the London-headquartered multinational oil and gas company said.

Huibert Vigeveno, Shell’s downstream and renewables Director, said: "The repurposing of this European refinery is a significant step towards serving our growing lubricant customer base with premium base oils. This investment is part of Shell’s drive to create more value with less emissions."

Shell expects the high degree of electrification of the base oil plant, as well as the ceasing of crude oil processing into fuels at the Wesseling site, to reduce its scope one and two carbon emissions by around 620,000 tonnes per year.

Shell's target is to become a net-zero emissions energy business by 2050.

The new base oil plant is expected to start operations in the second half of this decade. Shell said it will have a production capacity of around 300,000 tonnes a year, equivalent to about 9% of current EU demand and 40% of Germany’s demand for base oils.

Shares in Shell closed up 1.4% at 2,425.50 pence in London on Friday.

By Jeremy Cutler, Alliance News reporter

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