Press Release

Shell to supply residual heat to Rotterdam region

Joint approach for successful energy transition and reduction of CO2 emissions
Shell, Warmtebedrijf Rotterdam (Rotterdam Heat Company) and the Port of Rotterdam Authority will supply the Rotterdam region with residual heat released from the Shell Pernis refinery. This project, the basis of the first so-called 1-on-1 agreement between the State and the business sector in the framework of the Dutch Energy Agreement, should supply sufficient energy to heat 16,000 households.

It is important for Pernis and Shell Moerdijk, the production sites of Shell in the Netherlands, to improve their energy efficiency. The decision to supply residual heat together with other parties is the next step towards improving that efficiency. Cooperation is essential to the success of the energy transition.

‘Shell Pernis is already one of the most energy-efficient refineries in the world,’ says Jos van Winsen, general manager at Shell Pernis. ‘The purpose of this project is to reduce the net CO2 emissions of the Rotterdam region even further.’

Allard Castelein, CEO Port of Rotterdam Authority: ‘Shell is the second company after AVR to supply heat to buyers outside the port. This is a significant step towards building a large heat network with various sources in the port and buyers throughout the province of South Holland. Industries in the port of Rotterdam produce a lot of heat which the port cannot use. Our aim is to put as much as possible of that heat to work usefully via that network. Heat will come from both fossil fuel sources and renewable sources. That ensures that the network preserves its value in the long term as well.’

The project is the first company-specific agreement between the business sector and the State which is to contribute to achieving the energy-saving objectives of the Dutch Energy Agreement. Agreements have been made in the Energy Agreement on energy saving, clean technology and climate policy. One of the agreements is that the energy-intensive industries will endeavour to save 9 petajoules (PJ) of energy in 2020.
Henk Kamp, Minister of Economic Affairs: ‘I appreciate the leading role of Shell, Rotterdam Heat Company and the Port of Rotterdam Authority in carrying out the ambitions of the Energy Agreement. They are the first companies in the energy-intensive industry which are taking measures to achieve the 9 petajoules energy savings agreed in the Energy Agreement. I anticipate that more companies in the energy-intensive sector will make similar energy-saving agreements in the coming months. It is a win-win situation: companies not only contribute to reaching the saving goals, but they also improve their own competitive positions through lower energy costs.’

The project involves a total investment of around €16 million, of which the Port of Rotterdam Authority will pay around €8 million. Shell invests in the systems which will remove the residual heat from the refinery in a controlled manner. The Port of Rotterdam Authority invests in the heat pipeline which allows the transport from Shell Pernis to the existing heat network. The Rotterdam Heat Company invests in the connection to the existing heat network, the management, operation and maintenance of the heat network and distributes the heat to its customers.

This project equates to annual energy savings of 0.6 PJ, which corresponds with an average capacity of about 20 megawatts (MW) supplied by Shell to the heat network. This is enough to meet the heating needs of approximately 16,000 households. This can reduce the annual CO2 emissions of households with 35,000 tons.

Read more in our annual report 2016

Source: Shell, Warmtebedrijf Rotterdam (Rotterdam Heat Company) and the Port of Rotterdam Authority

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