Shell pauses European biofuels facility construction for review
Shell Nederland Raffinaderij B.V., a subsidiary of Shell plc, has announced a temporary pause in the on-site construction of its 820,000-tonne-per-year biofuels facility at the Shell Energy and Chemicals Park Rotterdam in the Netherlands. The decision aims to address project delivery issues and ensure future competitiveness amid current market conditions. This pause will reduce contractor numbers and slow down activity, helping to control costs and optimise project sequencing.
Huibert Vigeveno, Shell’s Downstream Renewables and Energy Solutions director, emphasised the strategic move to assess the best commercial path forward while reaffirming Shell’s commitment to achieving net-zero emissions by 2050. He highlighted the importance of low-carbon fuels in Shell’s strategy to decarbonise profitably.
“Temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project,” said Vigeveno.
“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,” said Vigeveno. “And we will continue to use shareholder capital in a measured and disciplined way, delivering more value with less emissions.”
An impairment review will follow this decision, with further guidance expected in Shell’s second-quarter update on July 5, 2024. Initially approved in September 2021, the facility aims to produce sustainable aviation fuel (SAF) and renewable diesel from waste. Shell, a major player in the energy sector, continues to invest significantly in low-carbon energy solutions, planning to allocate USD10-USD15 billion between 2023 and 2025.
