The Strategist

Shell to suspend biofuel plant construction in Rotterdam

07/03/2024 - 05:36

Shell has decided to halt the development of a biofuel manufacturing facility in Rotterdam for the time being.

Shell to suspend biofuel plant construction in Rotterdam
According to a statement from the corporation, this decision was made to address concerns about the project's continued implementation and to guarantee its competitiveness going forward, given the state of the market.

The project envisages building a facility that can produce 820,000 tonnes of biofuel annually, including sustainable aviation fuel (SAF).

"We can evaluate the most economically feasible course of action by temporarily stopping the project's work now," stated Huibert Vigeveno, director of Shell's business that specializes in energy solutions, renewable energy, and refining.

According to the company’s statement, it will also assist the business in cost control and project sequencing optimization.

"We remain committed to achieving carbon neutrality by 2050 and low-carbon fuels are a key part of our strategy," Vigeveno stated.

Chief Executive Wael Sawan had previously reduced several of the company's goals in Shell's energy transition plan.