Shell Nederland Halts Construction of Biofuels Facility in Rotterdam Due to Project Challenges and Market Conditions
Shell Nederland Raffinaderij has announced a temporary pause on the construction of its biofuels facility in Rotterdam due to project delivery challenges and unfavourable market conditions. The facility was intended to produce sustainable aviation fuel and renewable diesel, but Shell will now conduct an impairment review to determine the next steps. Despite the setback, Shell reaffirms its commitment to achieving net-zero emissions by 2050.
Shell Nederland Raffinaderij, a subsidiary of Shell, has announced a temporary pause on construction of its 820,000-ton-per-year biofuels facility at the Shell Energy and Chemicals Park in Rotterdam, Netherlands. Initially planned to start operations this year, the plant was set to produce sustainable aviation fuel and renewable diesel from waste. However, Shell has faced challenges in sequencing project delivery and will use this pause to conduct an impairment review. Market conditions, including weaker profit margins for renewable diesel and sustainable aviation fuel, also influenced the decision.
Huibert Vigeveno, Shell’s Downstream, Renewables, and Energy Solutions Director, stated that this pause allows the company to assess the most commercially viable way forward for the project. Despite this delay, Shell maintains its commitment to net-zero emissions by 2050.
In a separate initiative, Cepsa Química has partnered with Persán to transport chemical products using 100% renewable diesel (HVO), reducing emissions by approximately 126 tons of CO2 annually. This collaboration involves transporting linear sulfonic acid, a key ingredient in biodegradable detergents, from Cepsa’s San Roque facility to Persán in Seville. The use of HVO, produced from organic waste, supports the principles of a circular economy by reducing CO2 emissions by up to 90% over its lifecycle.
