Shell acquires waste oil recycling firm in Southeast Asia

The acquisition will include 100% of EcoOils’ Malaysian subsidiaries and 90% of its Indonesian subsidiary.

Shell Eastern Petroleum has acquired EcoOils, a waste oil recycling firm in Southeast Asia. This acquisition is part of Shell’s ambition to increase production of sustainable low carbon fuels for transport, including sustainable aviation fuel.

The acquisition will include 100% of EcoOils’ Malaysian subsidiaries and 90% of its Indonesian subsidiary.

EcoOils uses recycling technology to reduce waste going into landfill and produce spent bleaching earth oil, an internationally recognised biofuels feedstock that can be used to produce sustainable low carbon fuels.

“To continue supplying customers with the energy products they need into the future, Shell is investing in and producing sustainable low carbon fuels for transport. This acquisition provides secure access to a recognised, advanced feedstock which can be used at Shell’s biofuels facilities to meet that aim,” said Sinead Lynch, Shell’s Senior Vice President for Low Carbon Fuels.

“This acquisition underscores the ongoing transformation of Shell’s business as we strive to provide more low-carbon energy solutions to our customers as part of their decarbonisation journey,” he added.

Low carbon fuels will help to meet growing demand for decarbonisation solutions from customers in the transport sector, including hard-to-decarbonise sectors such as aviation. Sustainable aviation fuel currently accounts for around 0.1% of global aviation fuel. By 2030 Shell aims to have at least 10% of its global aviation fuel sales as sustainable aviation fuel.