Shell steps up commitment to sustainable mobility at Michelin Challenge Bibendum Shanghai

Shell today reaffirmed its commitment to achieve sustainable mobility through the development of various alternative sources of energy at the Michelin Challenge Bibendum conference held in Shanghai, China.



Speaking to more than 3,000 delegates at the Michelin Challenge Bibendum conference, Mr. Pirret outlined the Shell strategy to enable more sustainable transport through three avenues: partnership with Original Equipment Manufacturers (OEM); developing fuels, lubricants and other products that can deliver cleaner, more energy-efficient transport; and working with consumers to help them improve their vehicle fuel efficiency.


Mr. David Pirret, Executive Vice President, Lubricants, Shell International Petroleum Company Ltd. Said, “At Shell we have long recognized the conflict between the need for mobility and the toll it is taking on our planet. We believe to resolve it, we must all face up to the truth that while demand for energy is growing at an increasingly rapid rate, access to conventional oil supplies is declining and there is an increasing need to keep energy-related carbon dioxide (CO2) emission at acceptable levels.”


Creating OEM Partnerships

With partners such as Renault-Nissan, Volkswagen and Mercedes, Shell has been developing advanced lubricants to meet OEMs’ specific requirements. One result of the OEM partnership is the development of LowSAPs, or low sulphated ash, phosphorous and sulphur lubricants that can optimize the efficiency of the engines’ after-treatment systems.


In China, Shell has built partnerships with more than 40 major auto manufacturers, including Volkswagen, Renault-Nissan, Shanghai General Motors, Suzuki and FAW, in an effort to provide the best lubricant and fuels products and services to Chinese consumers.


Leading the Market for Better Fuel Economy

At the same time, Shell is also committed to helping motorists change their driving habits to improve fuel economy, and ultimately reduce the demand for energy. In a survey of 3000 people conducted by Shell in 11 countries, only 40 percent of those surveyed have made attempts to improve the fuel economy of their cars.


In China, formula Nemo, which is designed to clean and protect the engine, is added to every litre of fuel sold at Shell retail stations.


Sourcing for Alternative Fuels

To ensure that there is a steady supply of fuel for future generations and to reduce CO2 emissions, Shell is continuously looking for better ways to extract oil from unconventional sources like sand and shale, and develop alternative fuel sources.


Gas-to-liquid Fuel, or GTL is one example of an alternative fuel source that Shell is developing. GTL Fuels can be delivered using existing fuel infrastructure and can be used in conventional diesel engines without the need for modification. Shell expects that it will become the first company to produce GTL Fuels and lubricants on a large commercial scale with its plant in Qatar at the end of the decade.


We have concluded a six-month trial of Shell synthetic GTL Fuel, on Shanghai’s Euro II standard buses. Test results of the engine emissions by the State Vehicle Test Centre showed that Shell GTL Fuel can reduce particles matters by 35%, NOx by 15%, CO by 13% and CO2 by 4% compared with conventional Euro II diesel. It demonstrates that GTL is a good alternative fuel for mega cities’ public transport.


Shell is also exploring and developing second-generation biofuels. Produced from agriculture waste and materials containing cellulose, second generation biofuels do not depend on food crops and thus resolves the dilemma of burning food for fuel. Only last week, Shell announced an agreement with Codexis Inc. to develop new super enzymes to convert biomass to fuel in a five-year research collaboration project. The research focuses on adapting enzymes to improve the conversion of a range of raw materials into high-performance fuels. At the same time, Shell is working with Iogen in Canada and CHOREN Industries in Germany to develop a full-scale commercial plant and the world’s first demonstration plant respectively. The demonstration plant is expected to come on line this year.


The third fuel source that Shell is developing is hydrogen. Shell has recently partnered with General Motors to understand the challenge of producing, distributing and using hydrogen to power cars of the future.


Today, we have officially opened the first Hydrogen station in Shanghai. It will provide compressed gaseous hydrogen for a fleet of fuel cell cars and buses operating in the Shanghai region. Hydrogen fuel cell vehicles (FCV) have the potential to dramatically reduce CO2 emissions. Emissions from FCV tailpipes are almost zero, significantly contributing to improved local air quality.


“The biggest challenge we face is the effect of CO2 emissions on climate change. While the alternative fuels that Shell is developing can contribute to lower CO2 emissions, making sustainable mobility a reality will require not only individual efforts, but also a collective integrated approach – a partnership of all stakeholders, from companies and governments, to the everyday motorist,” said Mr. Pirret.