Shell has decided not to restart construction of its planned biofuels facility at the Shell Energy and Chemicals Park in Rotterdam, after determining the project was no longer commercially viable.
The plant, first announced in 2022, was set to produce low-carbon fuels, including sustainable aviation fuel (SAF). But following a review of market dynamics and costs, Shell concluded the project would not be competitive.
“As we evaluated market dynamics and the cost of completion, it became clear that the project would be insufficiently competitive to meet our customers’ need for affordable, low carbon products,” said Machteld de Haan, Shell’s Downstream, Renewables and Energy Solutions President.
Shell stressed it remains committed to biofuels, noting it is already one of the world’s largest traders and suppliers of SAF, and continues to invest heavily in lower-carbon energy, including hydrogen, CCS and renewable power.
The company has recently invested billions of dollars in energy transition projects in the Netherlands, including the Porthos CCS scheme and Holland Hydrogen 1.
Related financial impairments from the Rotterdam cancellation will be disclosed in the upcoming quarterly results.
