Shell’s Dutch subsidiary pauses the development of their biofuels plant in Rotterdam to address project challenges and enhance future competitiveness. The suspension aims to control costs and optimize project sequencing, with details to be revealed in the upcoming earnings update.
Shell PLC subsidiary, Shell Nederland Raffinaderij BV, has temporarily suspended construction of its 820,000 tonnes per year biofuels plant at the Shell Energy and Chemicals Park Rotterdam in the Netherlands. Initially approved in September 2021, the project aims to produce sustainable aviation fuel (SAF) and renewable diesel from waste. The suspension, effective from July 2, is intended to address project delivery challenges and ensure future competitiveness in current market conditions.
Huibert Vigeveno, Shell’s Director of Downstream, Renewables, and Energy Solutions, stated that the pause will help control costs and optimize project sequencing. A project-impairment review will be undertaken, with further details to be provided in Shell’s second-quarter 2024 earnings update on July 5.
Despite the suspension, Shell reiterated its commitment to achieving net-zero emissions by 2050, emphasizing low-carbon fuels as a significant component of their strategy. The plant, once completed, will produce enough renewable diesel to offset 2.8 million tonnes of CO2 emissions annually.
The interim suspension will result in reduced on-site contractor presence and construction activities. Future updates regarding the project’s status and timelines will be communicated as they become available.
