Shell brings 5% biodiesel blend to Hong Kong - report

Dec 2, 2014 - The Hong Kong-based unit of oil and gas major Royal Dutch Shell PLC (LON:RDSA) has started commercial sales of a 5% biodiesel blend on the local market, South China Morning Post (SCMP) said today.

The new product is mainly aimed at corporate customers, which are looking to reduce their greenhouse gas emissions and meet other sustainability targets, according to the report. However, the success of the new type of fuel is uncertain, as there are no mandatory blending requirements in the region and demand would be driven only by the environmental awareness of customers from the government, industrial and commercial sectors.

By comparison, the US and Europe have set mandatory biodiesel blending requirements of 5%-10% and 7%, respectively. Indonesia, Malaysia, the Philippines, South Korea and Taiwan have also implemented such policies, SCMP noted.

Previously, Shell has carrying out trial sales in Hong Kong in cooperation with Indian infrastructure developer Gammon Infrastructure Projects Ltd (BOM:532959), while also constructing a fuel blending facility there. Shell purchases the biodiesel for its blends from ASB Biodiesel (Hong Kong) Ltd, which owns and operates a plant with an annual output of 100,000 tonnes.

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