Introduction

By 2050 the world is expected to have over 2 billion more people and accordingly energy demand is likely to be twice as high as it is today. If the planet earth is to avoid the impact of the climate change, the greenhouse gases emissions must have to fall by at least half of the present emissions. It was agred in Copenhagen that the countries which emit the most CO2, need to work towards a new, low-carbon energy future. Royal Dutch Shell (Shell) has already initiated necessary steps to help build the energy system of tomorrow by producing cleaner-burning natural gas; working to deliver advanced fuels and lubricants and lower-carbon biofuels; and building a capabiltiy in carbon capture and storage.

Pathways to Emissions Reduction

Shell is a group of energy and petrochemical companies employing 101, 000 people in more than 90 countries. Upstream mainly searches for and recovers oil and natural gas, extracts bitumen from oilsands that is converted into synthetic crudes, liquefies natural gas and is active in gas-to-liquids technology. Down stream manufactures, supplies and markets oil products and chemicals worldwide. Manufacturing and supply include refineries, chemical plants and the supply and distribution of feedstocks and products.

In 2008, Shell identified six main pathways to follow to reduce CO2, and to achieve a low-carbon energy future. A brief summary of the performance in 2009 is given below:

1. Increase efficiency of the operations - Shell introduced long-term programmes and investments in improving energy efficiency across the operations and projects. Upstream operations have energy management plans in place to optimise processes and equipment used to maximise production from declining fields. Over the full year, energy efficiency of the chemical plants improved and additional steps are being taken to improve energy efficiency further by continuing to implement a CO2 and energy management (CEM) programme at the refining and chemical plants.
   
   
2. Establish CO2 capture and storage (CCS) facilities - Shell is involved in a number of demostration projects in CCS which also includes the world's largest CCS demonstration project in Mongstad, Norway, having a capacity to capture 100,000 tonnes of CO2 a year from 2011. Shell is also involved in full scale CCS projects. One is the Gorgon Liquefied natural gas project (Shell interest 25% ) in Australia that will capture upto 4 million tonnes of CO2 a year. At the end of 2009, it was the world's biggest full scale CCS project confirmed so far.
   
   
3. Continue R&D in hydrocarbon production - Shell spent $1.1 billion in research and development (R&D) activities. In 2009, Shell signed an agreement to install a new technology called 'Cansolv' at a coal-fired power station in Wales. This system uses steam and chemicals to capture post-combustion CO2 and sulphur dioxide gases. It is expected to be in place by 2011.
   
   
4. Develop low CO2 sources of energy - In future, natural gas will be central to low-carbon energy because it produces upto 70% less CO2 than coal when used to generate the same amount of electricity. By 2012, Shell will be producing more gas than oil.
   
   Shell is the largest distributor of transport biofuels having sold 9 billion litres in 2009. Also a non-binding memorandum of understanding has been signed with Cosan in Brazil to form a joint venture to produce ethanol from sugarcane, the lowest-CO2 biofuel.
   
   
5. Manage energy demand for products using less energy and emit less CO2- During 2009, Shell launched its most efficient fuel ever - Shell Fuel Save - in five countries. Using this fuel can save upto one litre of fuel in a 50-litre tank. More than 150,000 drivers have signed up for getting online driving tips. The WAM Foam Technology of Shell for laying roads while emitting upto 30% less CO2 also continued to be more widely used.
   
   
6. Advocate for more effective CO2 regulation - Shell has urged key governments to adopt policy frameworks that would enable companies to develop the technologies needed to tackle CO2 emission. Shell advocates a global price for CO2 that will encourage industry to invest in CCS technologies, CO2 regulations that apply to the whole industry, the same standards and market based incentives so that competitive forces can drive the most cost-effective solutions.

Environmental Performance

In 2009, Shell started production from major oil and gas projects that will deliver energy for coming decades. Shell also made good progress on others that will start production beginning in 2010. Shell is also working to improve energy efficiency and reduce greenhouse gas emissions at all its operations. In addition, Shell is also reducing the use of freshwater through recycling and advanced technologies. The environmental performance reported by Shell for the year 2009 is as under:

• The direct greenhouse gas (GHG) emissions from facilities were 67 million tonnes on a CO2equivalent basis in 2009, 11% lower than in 2008 and around 35% below the 1990 level.
• Improvement in energy efficiency in oil and gas production as well as in chemical plants while refining declined.
• The new Shell Technology Centre, Amsterdam that opened in Netherland is almost CO2-neutral.
• Shell continued to help develop technology to capture CO2 and store it underground at a number of demonstration projects.
• Operational spills totalled 1,300 tonnes, lowest amount ever recorded by Shell.
  
  Shell used around 198 million cubic metres of fresh water, down from 224 million cubic metres in 2008. The environmental data of Shell for the last three years is given in the Table below.
  
  Shell is of the view that building a new, low carbon energy future will take time as there is no single solution. But taking decisive and positive steps today will help the world achieve it faster - and with less impact on the environment for tomorrow.

The present Case Study is based on the "Royal Dutch Plc sustainability report 2009"