Shell Eastern Petroleum (Pte) Ltd., a wholly-owned subsidiary of Shell plc, today announced it has acquired EcoOils Ltd., a waste oil recycling firm. This acquisition is part of Shell’s ambition to increase production of sustainable low carbon fuels for transport, including sustainable aviation fuel.

The acquisition will include 100 percent of EcoOils’ Malaysian subsidiaries and 90 percent of its Indonesian subsidiary.

EcoOils uses recycling technology to reduce waste going into landfill and produce spent bleaching earth oil, an internationally recognized biofuels feedstock that can be used to produce sustainable low carbon fuels.

“To continue supplying customers with the energy products they need into the future, Shell is investing in and producing sustainable low carbon fuels for transport. This acquisition provides secure access to a recognized, advanced feedstock which can be used at Shell’s biofuels facilities to meet that aim,” Sinead Lynch, Shell’s senior vice president for low carbon fuels, said. “This acquisition underscores the ongoing transformation of Shell’s business as we strive to provide more low-carbon energy solutions to our customers as part of their decarbonization journey.”

Low carbon fuels will help to meet growing demand for decarbonization solutions from customers in the transport sector, including hard-to-decarbonize sectors such as aviation. Sustainable aviation fuel currently accounts for around 0.1 percent of global aviation fuel. By 2030 Shell aims to have at least 10 percent of its global aviation fuel sales as sustainable aviation fuel.