Oil firm harnesses renewable energy

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    Unlocking the value. The integrated energy system will showcase Shell’s aspiration to thrive in the energy transition at its 110,000-barrel per day refinery in Tabangao, Batangas City.
    Unlocking the value. The integrated energy system will showcase Shell’s aspiration to thrive in the energy transition at its 110,000-barrel per day refinery in Tabangao, Batangas City.

    One of the country’s oil refineries aims to be the first to have an industrial-scale solar farm in the Philippines and one of the largest battery storage projects in Southeast Asia.

    Pilipinas Shell Petroleum Corp. (PSPC) is building an integrated energy system that harnesses solar, natural gas and battery energy storage system to power the electricity requirements of its 110,000-barrel per day refinery in Tabangao, Batangas City.

    Upon full completion, the solar project is expected to produce approximately 2,400 megawatt hours (MWh) of power annually while the battery energy storage system will have a capacity of 3 MWh which has the capacity to provide electricity to 850 homes.

    Work on the solar farm is expected to start next month while installation of the battery system is scheduled in the second quarter of 2020.

    The projects are also expected to improve the energy efficiency of PSPC’s Tabangao refinery while enabling the export of its excess natural gas-generated power to the Luzon grid and offset 8,760 tons of carbon dioxide annually, equivalent to planting more than half a million trees.

    “This integrated solution is the result of collaboration between Pilipinas Shell and Royal Dutch Shell’s New Energies business, to showcase Shell’s aspiration to thrive in the energy transition, and at the same time demonstrate opportunities to unlock value between conventional and new energy systems,” said Cesar Romero, PSPC president and chairman of Shell companies in the Philippines.

    Romero said in a statement upon the projects’ completion, the Tabangao refinery will earn the distinction of being the first oil refinery with an industrial-scale solar farm in the Philippines and one of the largest battery storage projects in Southeast Asia.

    “Pilipinas Shell takes a broad perspective on the energy transition and will deliver commercially-viable energy solutions to our own sites. This started in our retail business, where there are currently, 39 Shell retail stations in the Philippines already fitted out with solar panels and energy efficient equipment,” Romero said.

    Last month, PSPC partnered with Air Liquide Philippines, Inc. to complete its integrated hydrogen manufacturing facility at its Batangas refinery by the end of next year.

    The facility will be the first of its kind in the country and is targeted to improve the efficiency and competitiveness of the refinery and be capable of processing more crude oil varieties.

    The hydrogen manufacturing unit will also supply additional hydrogen requirements that will enable the refinery to extract increased diesel fuel compared to its current product slate, apart from a dedicated facility that will capture and liquify carbon dioxide for other uses.

    According to the Department of Energy, PSPC had a market share of 17.93 percent as of first half 2019.)