Shell Deutschland GmbH has made a final investment decision to repurpose the Wesseling site at the Energy and Chemicals Park Rheinland in Germany.
The transformation aims to convert the facility into a production unit for Group III base oils, essential in manufacturing lubricants.
The energy giant said the move aligns with its commitment to achieving a net zero emissions energy business by 2050.
The new base oil plant is set to start in the second half of this decade, producing about 300,000 tonnes per year – meeting 9% of EU demand and 40% of Germany’s demand for base oils.
Huibert Vigeveno, Shell’s Downstream and Renewables Director, said: “The repurposing of this European refinery is a significant step towards serving our growing lubricant customer base with premium base oils.
“This investment is part of Shell’s drive to create more value with less emissions.”