CALGARY, AB, June 26, 2024 /PRNewswire/ -- Shell Canada
Products, a subsidiary of Shell plc, today announced the Final
Investment Decision (FID) for Polaris, a carbon capture project at
the Shell Energy and Chemicals Park, Scotford in Alberta, Canada. Polaris is designed to
capture approximately 650,000 tonnes of CO2 annually
from the Shell-owned Scotford refinery and chemicals complex.
In addition to the Polaris FID, Shell today announced FID to
proceed with the Atlas Carbon Storage Hub in partnership with ATCO
EnPower. The first phase of Atlas will provide permanent
underground storage for CO2 captured by the Polaris
project.
"Carbon capture and storage is
a key technology to achieve the Paris Agreement climate goals,"
said Huibert Vigeveno, Shell's
Downstream, Renewable and Energy Solutions Director. "The Polaris
and Atlas projects are important steps in reducing emissions from
our own operations."
Polaris and Atlas will build on the success of the Quest carbon
capture and storage (CCS) facility at Scotford, which has safely
captured and stored more than nine million tonnes of CO2
since 2015 that would otherwise have been released into the
atmosphere.
Both projects are expected to begin operations toward the end of
2028.
Notes to editors
- Polaris (100% Shell-owned) will have the potential to reduce
Scope 1 CO2 emissions at Shell's Scotford refinery by
capturing and storing up to 40% and by up to 22% at the chemicals
complex.
- Shell is a 50/50 partner with ATCO EnPower in the Atlas Carbon
Storage Hub. The first phase of Atlas will provide permanent
underground storage for CO2 captured by the Polaris
project. A future phase of the Atlas Carbon Storage Hub, that could
potentially store carbon for the partners and third parties, is
subject to a future investment decision.
- CO2 emissions captured by Polaris will be sent to
the Atlas Hub via an approximately 22-kilometre pipeline to two
storage wells. CO2 will be stored there approximately
two kilometres underground in the Basal Cambrian Sands, the same
formation used to successfully store CO2 from the Quest
CCS facility.
- Polaris will leverage lessons learned from the Shell-operated
Quest CCS facility (10% Shell-owned), located at the Shell Energy
and Chemicals Park, Scotford near Edmonton, Alberta, adjacent to Shell's
refinery and chemicals plant (100% Shell-owned). Since 2015, Quest
has captured and stored about one million tonnes a year of
CO2 from the Scotford upgrader.
- As announced at Capital Markets Day in June 2023, Shell plans to invest $10-$15 billion
across 2023-2025 to support the development of low-carbon energy
solutions including e-mobility, low-carbon fuels, renewable power
generation, hydrogen, and carbon capture and storage.
Cautionary note
The companies in which Shell plc directly and indirectly owns
investments are separate legal entities. In this announcement
"Shell", "Shell Group" and "Group" are sometimes used for
convenience where references are made to Shell plc and its
subsidiaries in general. Likewise, the words "we", "us" and "our"
are also used to refer to 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 announcement refer to entities over
which Shell plc either directly or indirectly has control. The term
"joint venture", "joint operations", "joint arrangements", and
"associates" may also be used to refer to a commercial arrangement
in which Shell has a direct or indirect ownership interest with one
or more parties. 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.
Forward-looking statements
This announcement 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 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 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", "milestones", "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 Shell and could cause those results to differ
materially from those expressed in the forward-looking statements
included in this announcement, 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, judicial,
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, regional conflicts, such as
Russia's invasion of Ukraine, and a significant cybersecurity
breach; 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 announcement 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 Shell plc's Form 20-F for the year
ended December 31, 2023 (available at
www.shell.com/investors/news-and-filings/sec-filings.html and
www.sec.gov). These risk factors also expressly qualify all
forward-looking statements contained in this announcement and
should be considered by the reader. Each forward-looking statement
speaks only as of the date of this announcement, June 26, 2024.
Neither 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 announcement.
Shell's net carbon intensity
Also, in this
announcement we may refer to Shell's "net carbon intensity", which
includes Shell's carbon emissions from the production of our energy
products, our suppliers' carbon emissions in supplying energy for
that production and our customers' carbon emissions associated with
their use of the energy products we sell. Shell only controls its
own emissions. The use of the term Shell's "net carbon intensity"
is for convenience only and not intended to suggest these emissions
are those of Shell plc or its subsidiaries.
Shell's net-zero emissions target
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, they reflect our Scope 1, Scope 2 and Net
Carbon Intensity (NCI) targets over the next ten years. However,
Shell's operating plans cannot reflect our 2050 net-zero emissions
target, as this target is currently outside our planning period. In
the future, as society moves towards net-zero emissions, we expect
Shell's operating plans to reflect this movement. However, if
society is not net zero in 2050, as of today, there would be
significant risk that Shell may not meet this target.
Forward looking non-GAAP measures
This announcement
may contain certain forward-looking non-GAAP measures such as cash
capital expenditures and divestments. We are unable to provide a
reconciliation of these forward-looking Non-GAAP measures to the
most comparable GAAP financial measures because certain information
needed to reconcile those non-GAAP measures to the most comparable
GAAP financial measures is dependent on future events some of which
are outside the control of Shell, such as oil and gas prices,
interest rates and exchange rates. Moreover, estimating such GAAP
measures with the required precision necessary to provide a
meaningful reconciliation is extremely difficult and could not be
accomplished without unreasonable effort. Non-GAAP measures in
respect of future periods which cannot be reconciled to the most
comparable GAAP financial measure are calculated in a manner which
is consistent with the accounting policies applied in Shell plc's
consolidated financial statements.
The contents of websites referred to in this announcement do not
form part of this announcement.
We may have used certain terms, such as resources, in this
announcement 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.
Enquiries
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