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Global energy giant Royal Dutch Shell is using sustainable development as part of its business principles, balancing both short- and long-term interests when making its business decisions.

 

This year Shell China's largest capital investment, the Nanhai petrochemicals complex, moves into start-up phase.

 

The Dutch-based company has integrated economic, environmental and social considerations in the construction of the project, said Liu Xiaowei, deputy director of external affairs at Shell China.

 

Located in Daya Bay of South China's Guangdong Province, the cooperative project by Shell and China National Offshore Oil Corporation is so far the largest joint venture project in China.

 

With a total investment of 34.8 billion yuan (US$4.3 billion), it will manufacture 2.3 million tons of petrochemicals products to supply the markets in Guangdong and China's coastal areas, where demands for petrochemicals products are high, said Liu.

 

"As a crucial project for Shell in China, the Nanhai Petrochemicals Complex is being designed to international standards," said Liu. "In order to do this we have taken a lot of measures, which can be broadly separated into three categories, energy efficiency, water conservation, and waste minimization."

 

Liu said energy efficiency plays a major role in selecting which processes to use in the complex.

 

Hydrocarbon waste streams from the process plants, for example, are captured and used as fuel gas elsewhere in the complex.

 

As for the complex water use, using air-cooling to the fullest extent will minimize the amount of cooling water that is used. Compared with other complexes, it is expected to reduce the water use by 20 per cent to 25 per cent, said Liu.

 

Liu said the waste management strategy is based on handling waste internally. Waste that is generated will be reused or recycled to the maximum extent possible.

 

Liu said sustainable development has become a core value for Shell, which has practiced the concept in China for 3 years.

 

As part of its many sustainable development programs, last year Shell signed an agreement with the Science and Technology Commission of the Shanghai municipal government, which is expected to help Shanghai develop clean and efficient energy solutions.

 

The MOA outlined a number of areas for cooperation, including joint studies on clean alternative fuels and cost-effective ways to save energy and reduce emissions in the transport sector.

 

Liu said the commission and Shell are already collaborating on two ongoing trials of clean gas-to-liquid fuel.

 

The new generation fuel is being used in a taxi trial involving Volkswagen Passat vehicles in Shanghai in co-operation with Tongji University. It will also be tested in a laboratory trial on Chinese-manufactured heavy-duty engines in partnership with Jiaotong University.

 

According to Jack Jacometti, vice-president of Shell Gas & Power, energy conservation is the building blocks for any city; the co-operation with Shanghai is setting an example for clean energy development.

 

Liu said Shell is also working hard to advocate the sustainable development scheme in public. This year is the second year of Shell's Rural Energy Fellowship program. The program, which focuses on rural energy issues, invites graduate students from top universities in China.

 

These students go out into the field to study rural energy and try to find solutions to improve community sustainability.

 

(China Daily January 27, 2006)