Shell starts production at its first RNG facility in the U.S.

Shell Oil Products US, a subsidiary of Royal Dutch Shell plc, has successfully achieved startup and production of renewable natural gas (RNG) at its first U.S. biomethane facility, Shell New Energies Junction City, in the state of Oregon.

The facility utilizes locally sourced cow manure and excess agricultural residues to produce an expected 736,000 million British Thermal Unit (MMBtu) a year of renewable natural gas.

This milestone is part of a growing portfolio of developing RNG production and distribution assets supporting low-carbon intensity renewable compressed natural gas (R-CNG) as fuel for heavy-duty, on-road transport.

Biomethane plays a significant role in energy transition

“Biomethane has a significant role to play in the energy transition, and this achievement advances our strategy as we work to reduce emissions from the fuels and other energy products we sell,” said Carlos Maurer, executive vice president, Sectors and Decarbonization at Shell. “We are excited to offer renewable compressed natural gas as a low-carbon fuel choice for our customers.”

Shell is developing additional RNG production facilities in the United States located directly within operating dairies. Shell Downstream Galloway at the High Plains Ponderosa Dairy in Plains, Kansas, and Shell Downstream Bovarius at the Bettencourt Dairies in Wendell, Idaho, are part of this expanding biofuels portfolio utilizing cow manure as feedstock. Together, these two dairy RNG facilities can produce approximately 900,000 MMBtu a year of negative carbon intensity renewable natural gas.

Production from Shell New Energies Junction City, Shell Downstream Galloway and Shell Downstream Bovarius is expected to help supply Shell R-CNG fueling sites being planned at the company’s product distribution complexes in Carson, Van Nuys, Signal Hill, and San Jose, California, and at a terminal in Portland, Oregon, owned by Shell Midstream Partners L.P.

R CNG offers an attractive alternative for fleets to lower their carbon footprint compared to conventional diesel fuel. Providing 100% R-CNG for customers would allow these fueling sites to substantially decarbonize product movements out of the terminals.