After bp, Shell pauses work on 820,000tpa Rotterdam plant

Shell Nederland Raffinaderij B.V., a subsidiary of Shell plc, announced that it is temporarily pausing  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.

“Temporarily pausing on-site 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,” added Vigeveno. “And we will continue to use shareholder capital in a measured and disciplined way, delivering more value with less emissions.”

The energy giant took a final investment decision for the planned biofuels facility in September 2021.

The facility is designed to produce sustainable aviation fuel (SAF) and renewable diesel made from waste.

Earlier this week, bp also announced that it is pausing development of two biofuel plants in Germany and United States.

The decision by Shell to temporarily pause work on biofuels site is part of CEO Wael Sawan’s focus on profitability. Since taking office last year, Sawan has scrapped hydrogen projects, pulled out of various markets to focus on operations.