Shell (China) Projects and Technology

SHELL-WISON BOTTOM QUENCH COAL GASIFICATION TECHNOLOGY

Innovation and Advantages

He Fen Shell (China) Projects and Technology

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7th International Freiberg/Inner Mongolia Conference, China

June 8-12, 2015

Shell (China) Projects and Technology

DEFINITIONS AND CAUTIONARY NOTE

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Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves.

Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves. Resources are consistent with the Society of Petroleum Engineers 2P and 2C definitions.

Organic: Our use of the term Organic includes SEC proved oil and gas reserves excluding changes resulting from acquisitions, divestments and year-average pricing impact.

Resources plays: Our use of the term ‘resources plays’ refers to tight, shale and coal bed methane oil and gas acreage.

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectly has control. Companies over which Shell has joint control are generally referred to as “joint ventures” and companies over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory measures as a result of climate changes; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended 31 December, 2014 (available at www.shell.com/investor and www.sec.gov ). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 2nd June, 2015. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. There can be no assurance that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at all.

We use certain terms in this presentation, such as discovery potential, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain this form from the SEC by calling 1-800-SEC-0330.

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Shell (China) Projects and Technology

SHELL COAL GASIFICATION PROCESS GLOBAL EXPERIENCE

22 SCGP licenses in China 8 for Fertiliser 8 for Methanol 1 for Olefin 2 for Methanol/Ammonia 1 for Hydrogen 1 for Liquid fuels 1 for other chemicals

Europe NUON Buggenum, The Netherlands

IGCC Power Plant (1993 - 2013) Other 2 licenses, all for power IGCC

Vietnam: 2 SCGP licenses 2 for Ammonia

South Korea: 1 SCGP license 1 for IGCC

China Equity 50:50 JV with Sinopec in Yueyang Syngas for Fertiliser

Australia: 1 SCGP license 1 for Fertiliser

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Shell’s coal gasification technology is licensed for 29 applications globally including IGCC power plants and chemical production, in which 22 licenses are in China

Shell (China) Projects and Technology

WET SCRUBBING

FLYASH TO STORAGE

HP STEAM

MP STEAM

SLAG

QUENCH GAS

Gasifier

SALTS

RAW SYNGAS

WATER TREATMENT

900°C

FLYASH SYSTEM

1,600°C HPHT FILTER

SCGP line-up with syngas cooler has a wide application base in China

Simplified line-up developed to fit different requirements of (Chinese) customers

SCGP SYNGAS COOLER DESIGN

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COAL FEEDING

COAL/PETCOKE

MILLING/DRYING

FEEDING/PRESS.

Shell (China) Projects and Technology

BOTTOM QUENCH PROCESS

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WET SCRUBBER

COAL FEEDING

FILTER CAKE

MP STEAM

SLAG

COAL/PETCOKE Raw SYNGAS

WATER TREATMENT

1,600°C

PROCESS WATER

T~200°C MILLING/DRYING

Gasifier

FEEDING/PRESS.

PROCESS WATER

T~210°C

Simplified line up Reduced Capex Easier operation

Shell (China) Projects and Technology

IMPACT ON EFFICIENCY

Syngas Cooler

Raw syngas

Coal in 100%

81.5% LHV 20% moisture

in syngas

1.9%

12.1%

0.5%

3.6%

Thermal Efficiency 95.9% Cold gas efficiency 81.5%

Steam from Membrane Wall

Steam from Syngas Cooler

Unconverted carbon

low level heat

Bottom Quench

Raw syngas

Coal in 100%

81.5% LHV 50% moisture

in syngas

Thermal efficiency 85.4% Cold gas efficiency 81.5%

1.9%

0.5%

14.1%

Steam from Membrane Wall

Unconverted carbon

low level heat

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Shell (China) Projects and Technology velocity magnitude (m/s) vertical velocity (m/s)

HTC 400

HTC 250

HTC 750 (SCGP 250)Cold flow test

EXTENSIVE RESEARCH AND DEVELOPMENT ON BOTTOM QUENCH

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High HTC

Low HTC

Circulation

Full size test rig

CFD modelling

Shell (China) Projects and Technology

DEVELOPED BASED ON MATURE & PROVEN TECHNOLOGY

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The gasifier reactor and burners used in the Bottom Quench technology are virtually the same as those used in SCGP. The syngas cooler, for heat recovery, has been replaced by a dipleg water quench bath. Key design features: multi-burner, membrane wall, bottom water quench.

Bottom Quench Compared with SCGP SGC

Membrane wall Same

Opposed multiple burner Same

Dry feed system Same

Flyash removal system Proven at a commercial scale in Nanjing syngas plant

Shell (China) Projects and Technology

BOTTOM QUENCH COMMERCIAL PROJECT IN NANJING From construction to successful start-up

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Gasifier contract

Construction kick-off MCI Start up

Planned test phase

Commercial phase

Site overview June 2013

Gasifier/quench in the Dongfang workshop October 2012

Hoisting of the gasifier and quench December 2012

2012 Jan 2013 May 2013 Oct 2011 Aug

By Dec 2014, all scheduled tests were completed successfully, and the plant entered its commercial operation stage. The gasifier has achieved a continuous run record of 140 days.

2014 Nov Now

Shell (China) Projects and Technology

PROVEN TECHNICAL ADVANCES Good slag coverage in membrane wall

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Inspection of the gasifier reactor and quench section was performed after start-up and initial stable running: The slag coverage inside the gasifier was good; the spray nozzles and quench ring were also in good shape.

Shell (China) Projects and Technology 11

SCGP BOTTOM QUENCH IN NANJING: ADVANCES

Feedstock: Successfully tested broad range of coals

Shanxi DaYouI (Ash 25%, FT 1450) Shanxi DayouII (Ash 25%, FT >1500) ShenHun (Ash 15%, FT 1300) ShenHua (Ash 8%, FT 1200) Local high ash coal (Ash 30%)

Slag re-use for low ash coal

Carbon Conversion > 99% carbon conversion, carbon < 0.5% in slag and < 5% in filter cake,

High (> 90%) slagging efficiency

Primary water treatment Good settling with black water via proper flocculant to recycle gray water： TSS < 50 ppm, COD < 100 ppm

Operation Reliability

The gasifier has achieved a continuous run record of140 days.

Good results of the Shell-Wison Nanjing Bottom Quench gasifier are completely in line with expectations

April 2015

slag

grey water

filter cake from slag slurry

Shell (China) Projects and Technology

LESSONS LEARNED AND IMPROVEMENT Solved syngas line fouling issue

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After 140 days

Build up in 70 days

Build-up in 70 days

Adjusting Conditions Hardware

Shell (China) Projects and Technology

LESSONS LEARNED AND IMPROVEMENT Solved fly ash break-through issue

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Adjusting Conditions Hardware

0.050

0.100

0.150

0.200

0.250

0.300

0.350

0.400

20-Feb-14

2-Mar-14

12-Mar-14

22-Mar-14

1-Apr-14

11-Apr-14

21-Apr-14

Shif

t re

acto

r Pr

essu

re D

rop

[DP/

flow

2 ]

0.050

0.100

0.150

0.200

0.250

0.300

0.350

0.400

28-Nov-14

13-Dec-14

28-Dec-14

12-Jan-15

27-Jan-15

11-Feb-15

26-Feb-15

13-Mar-15

28-Mar-15

Shif

t re

acto

r Pr

essu

re D

rop

[DP/

flow

2 ]70 days 140 days

Shell (China) Projects and Technology

LICENSING UPDATE OF SCGP BOTTOM QUENCH

Client: YTH Jinxin Chemical Co Ltd. Hulunbeier, Inner Mongolia

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YTH Jinxin

Project Schedule

Licensing contract award: Jan 2014 BDEP delivery by Shell: May 2014 Gasifier manufacture: Dongfang Boiler Start-up target 2015

Net syngas production (CO+H2): 60,000 Nm3/hr Feedstock capacity 1200 t/h (lignite coal, AR basis)

Gasifier Capacity

Project Information

Shell (China) Projects and Technology

Thanks!

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