Shell is installing solar photovoltaic panels on the roofs of seven lubricant plants in India, China, Italy, Singapore and Switzerland. Combined, the panels are expected to generate over 7,500 MWh of electricity annually and can result in the avoidance of greenhouse gas (GHG) emissions of approximately 4,500 tonnes on a CO2-equivalent basis per year, equivalent to taking about 2,600 cars off the road for one year.
In India, the panels will be installed at the company’s lubricants plant in Taloja, Maharashtra. Shell will be working with Cleantech Solar for the installation of approximately 1,700 panels, which is expected to generate 683 MWh of electricity annually, and can result in the avoidance of 500 tonnes of annual GHG emissions. As for the funding model for the Taloja solar panels, Shell has signed a subsidy free purchase power agreement with Cleantech Solar. As part of the agreement, Cleantech Solar will design, build, finance, own, operate, and maintain the solar facility for the Taloja plant in India. Shell acquired a 49% equity stake in Cleantech Solar, a developer, owner, and operator of commercial and industrial solar energy systems in Southeast Asia and India.
“Using solar energy to help power our lubricant plants enables us to reduce the carbon intensity in our lubricants supply chain,” said Richard Jory, Shell’s Vice President, Lubricants Supply Chain. “Every industry has to do its part in developing cleaner ways of working and this is part of our commitment to run a safe, efficient, responsible and profitable business.”
The solar energy generated will be used to help power operations at these lubricant plants, lowering operating costs in the long-run and reducing reliance on the grid. All panels will be installed by end-2019. Shell is looking to expand the use of solar panels in other lubricant plants around the world.
Other examples of Shell’s work to make its lubricants business less carbon intensive include improving the energy efficiency of its lubricant plants, and working to reduce, reuse and recycle packaging across the lubricant supply chain.