Bp halts Castellon SAF project

British energy major bp has announced plans to halt the work on the conversion project to produce sustainable aviation fuel (SAF) at the Castellon refinery in Spain citing lower-than-expected growth in the market.

The project was part of a €2bn investment to turn around the site into a renewables unit. The investment was announced in 2023.

The company has recently backtracked on multiple renewable projects citing poor market conditions. The company said that the recent decision to halt work at Castellon refinery is due to the lack of policy support and low demand.

Bp is currently undergoing a massive strategic shift in its low-carbon strategy pausing various planned sites as it invests in high return projects.

The company is still going ahead with its Rotterdam project with final investment decision expected in 2027 if the market dynamics are favourable.