Shell to stop construction of biofuels facility in the Netherlands

By Editor


Shell has decided to temporarily pause on-site construction work at its 820,000 tonnes a year biofuels facility at the Shell Energy and Chemicals Park Rotterdam in the Netherlands to address project delivery and ensure future competitiveness given current market conditions.

As a result, contractor numbers will reduce on site and activity will slow down, helping to control costs and optimise project sequencing.

“Temporarily pausing construction now will allow us to assess the most commercial way forward for the project,” said Huibert Vigeveno, Shell’s Downstream, Renewables and Energy Solutions Director.

“We are committed to our target of achieving net-zero emissions by 2050, with low-carbon fuels as a key part of Shell’s strategy to help us and our customers profitably decarbonise,” Huibert Vigeveno said.

Shell said an impairment review will be conducted for this project. Further guidance will be included in Shell’s second quarter update note scheduled for publication on Friday, July 5, 2024.

Shell said the planned biofuels facility was designed to produce sustainable aviation fuel (SAF) and renewable diesel made from waste.

Shell is one of the world’s largest energy traders and blenders of biofuels. Through its Raizen joint venture in Brazil, Shell is the largest producer of second-generation ethanol and the leading sugar cane ethanol producer globally.

Shell plans to invest $10-$15 billion across 2023-2025 to support the development of low-carbon energy solutions including e-mobility, low-carbon fuels, renewable power generation, hydrogen, and carbon capture and storage. News Desk

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