Shell, the largest lubricants business in the world, has decided to install solar photovoltaic (PV) systems on the roofs of seven lubricant plants in India, China, Singapore, Switzerland, and Italy.
Altogether, the solar panels are expected to generate over 7,500 MW of electricity every year.
According to the company, the project can curtail greenhouse gas emissions worth nearly 4,500 tons annually, which is equivalent to taking 2,600 cars off the road for a year.
In India, the rooftop solar systems will be installed in Taloja, Maharashtra. Other projects include the Nangang, Zhapu, and Zhuhai projects in China, Cisliano project in Italy, Tuas project in Singapore, and Bern project in Switzerland.
Shell will be working in conjunction with Cleantech Solar for the installation of approximately 1,700 solar modules, which is expected to generate 683 MWh of electricity annually. All installations are scheduled to be completed by the end of 2019.
Asked why Shell took the plunge to install solar panels in these countries, the company spokesperson told Mercom, “Using solar energy at our facilities is one way we can participate in the energy transition. Our goal is to reduce carbon intensity in our lubricants supply chain. Deploying solar PV in our facilities, such as lubricant plants and offices, is one way we can affordably power our own operations with less carbon dioxide. This is part of Shell Lubricants’ commitment to run a safe, efficient, responsible, and profitable business.”
For the funding model for the Taloja solar project, Shell has signed a subsidy-free purchase power agreement with Cleantech Solar. As part of the deal, Cleantech Solar will design, build, finance, own, operate and maintain the Taloja solar facility.
When Mercom asked about the financial agreement between Shell and Cleantech, the spokesperson did not comment on the capital expenditure for the individual investments.
Last year, Mercom had reported that Shell acquired a 49% interest in Cleantech Solar, a Singapore-based renewable energy project developer. “Using solar energy to help power our lubricant plants “Using solar energy to help power our lubricant plants enables us to reduce the carbon intensity in our lubricants supply chain,” said Richard Jory, Shell’s vice president, lubricants supply chain.
Earlier, Indian lead-acid battery manufacturer, Exide Industries (Exide), entered into three share subscription and shareholders’ agreements with renewable energy developer Cleantech Solar to install captive solar projects at its factories.
Mercom had previously reported that Cleantech Solar had joined forces with responsAbility, an asset manager in the field of development investments and professionally-managed investment solutions provider, to increase the momentum of rooftop solar energy adoption in South-East Asia and India. The company had also announced last year that it would develop rooftop solar projects aggregating 27 MW in three Asian countries.
Image Credit: Shell India
Anjana is a news editor at Mercom India. Before joining Mercom, she held roles of senior editor, district correspondent, and sub-editor for The Times of India, Biospectrum and The Sunday Guardian. Before that, she worked at the Deccan Herald and the Asianlite as chief sub-editor and news editor. She has also contributed to The Quint, Hindustan Times, The New Indian Express, Reader’s Digest (UK edition), IndiaSe (Singapore-based magazine) and Asiaville. Anjana holds a Master’s degree in Geography from North Bengal University, and a diploma in mass communication and journalism from Guru Ghasidas University, Bhopal.