SHV Energy will continue to supply its customers with clean, safe and efficient energy for applications beyond the utility grids, while steadily increasing the supply of BioLPG (amongst other renewable fuels), as an important driver of our Advancing Energy Together strategy. For the longer term, we aim to obtain a substantial position in renewables, alternative energy solutions and energy efficiency services.
The next five years
The next five years are critical for our renewable fuel strategy. Together with our partners, we will invest in solutions to improve technologies and pave the path towards large-scale production of BioLPG. In 2019, we announced our co-financing of a Dutch facility that will produce sustainable aviation fuel and deliver BioLPG as a by-product. In March 2018, we received our first supply of BioLPG from the Neste plant in Rotterdam. Our agreement allows us to market and sell about 160,000 tons of BioLPG from the Neste plant over a four-year period, which equals about 1 percent of our global volume. This small but promising start makes it crystal clear why we need to broaden the supply chain fast, as we need to go from 1 to 100 percent to meet our target.
Broaden the supply
We take our responsibility as market leader seriously and are actively working to encourage the wider sector to broaden the supply of truly sustainable energy feedstock. We recognize that any alternative feedstock must be fully traceable, sustainable and well managed. Generally, palm oil used as a feedstock for fuel is expected to be gradually phased out together with other so-called first-generation feedstocks. This means other routes need to be taken to increase supply of sustainable feedstock, including a particular focus on waste in new conversion routes. Currently, many of the world’s resources are just wasted. The right valorisation of waste, both bio and municipal, could be a game changer in finding new feedstock.
"Currently, many of the world’s resources are just wasted. The right valorization of waste, both bio and municipal, could be a game changer in finding new feedstock."
Next to our core product, we actively seek business development opportunities in renewables and have started building an alternative energy business as a second leg within SHV Energy. We established dedicated resources to support these new energy market aspirations by participating in alternative technologies. We invest in new energy businesses through investments, ranging from minority stakes to full acquisitions. Indirectly, we made a first step by joining the evergreen fund of Emerald Technology Ventures in April 2018. Investments in businesses involved in solar energy, energy efficiency and other renewable solutions are still pending. Competition is fierce, but as a family-owned company with a long-term strategic perspective, we can make a difference.
Advancing Energy Together
SHV Energy will continue to search for new ways of working together with our local business units and other parties within our value chain to fulfil our purpose of Advancing Energy Together, by providing accessible, clean, safe and affordable power to everyone. It is our contribution to the challenges of today: serving our customers and growing our company, while offering a great place to work and creating true long-term value by doing well for the world we live in.