Shell halts construction at its biofuel plant amid market challenges
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Shell announced that it plans to temporarily pause on-site construction work at one of Europe’s largest biofuel plants due to weak market conditions. The biofuel facility is located at the Shell Energy and Chemicals Park Rotterdam in the Netherlands.
The facility is designed to produce sustainable aviation fuel (SAF) and renewable diesel made from waste.
Shell said this is to “address project delivery and ensure future competitiveness given current market conditions”.
As a result, contractor numbers will reduce on-site, and activity will slow down, helping to control costs and optimize project sequencing.
Huibert Vigevano, Shell’s Downstream Renewables and Energy Solutions Director said, “Temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project.”
Vigevano added, “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 our customers and us profitably decarbonize. We will continue to use shareholder capital in a measured and disciplined way, delivering more value with less emissions.”
Read more: Shell revises 2030 carbon emissions reduction target
Following the decision to halt on-site construction, an impairment review will be conducted for this project. Additional information will be provided in Shell’s second-quarter update note, scheduled for publication on Friday, July 5, 2024.
Shell intends to invest $10-$15 billion between 2023 and 2025 to advance low-carbon energy solutions, including e-mobility, low-carbon fuels, renewable power generation, hydrogen, and carbon capture and storage.
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