Shell Nederland Raffinaderij B.V., a subsidiary of Shell plc, has confirmed it will not restart construction of its biofuels facility at the Shell Energy and Chemicals Park in Rotterdam.
The project, which began in 2022, has been halted following a commercial and technical reassessment of its competitiveness.
Machteld de Haan, Shell’s Downstream, Renewables and Energy Solutions President, said: “As we evaluated market dynamics and the cost of completion, it became clear that the project would be insufficiently competitive to meet our customers’ need for affordable, low carbon products.
“This was a difficult decision, but the right one, as we prioritise our capital towards those projects that deliver both the needs of our customers and value for our shareholders.”
Despite the decision, Shell maintains that biofuels remain critical to future energy systems.
“We continue to believe that low carbon molecules, including biofuels, will underpin the future energy system. Shell is at the forefront of this industry and its development as one of the world’s largest traders and suppliers of biofuels, including Sustainable Aviation Fuel (SAF),” De Haan added.
Between 2023 and 2024, Shell invested U.S.$8 billion in lower carbon technologies such as power, carbon capture and storage (CCS), hydrogen and low-carbon fuels.
In 2024 alone, the company traded over 10 billion litres of low-carbon fuels and became one of the world’s leading suppliers of SAF.
Shell halts construction of Rotterdam biofuels plant appeared first on Energy Live News.