Shell has cancelled construction of its biofuels plant in Rotterdam after pausing work in July due to technical problems. The company concluded the plant would be insufficiently competitive to meet demand for affordable, low-carbon products and decided not to restart building, prioritising capital toward projects that deliver customer needs and shareholder value. The plant had been expected to produce up to 820,000 tonnes of biofuels annually and was delayed from April 2024 to 2025. The cancellation follows a March 2023 abandonment of a sustainable aviation fuel project in Singapore and coincides with a wider shift away from some renewable projects in the oil and gas sector.
Machteld de Haan, the company's head of downstream, renewables and energy solutions, 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.
The oil company, which paused construction at the site in July last year to tackle technical problems, said it had decided not to restart building after it found the plant would be insufficiently competitive to meet demand for affordable, low-carbon products. The move to scrap the project in Rotterdam marks another setback for its biofuel designs, after the company cancelled a sustainable aviation fuel (SAF) project on Singapore's Bukom Island in March 2023.
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