Insufficiently competitive

Shell puts a stop to biofuel plant construction in Rotterdam

Met een geplande capaciteit van 820.000 ton per jaar zou de fabriek de grootste van Europa worden.

Shell has decided to permanently abandon construction of the biofuels plant at the Shell Energy and Chemicals Park in Rotterdam (Pernis). From a commercial and technical evaluation, the company concluded that construction costs are too high to make the project competitive, making continuation unfeasible.

Shell had been working on the plant, intended to produce sustainable aviation fuels and renewable diesel from waste, since 2022. With a planned capacity of 820,000 tonnes per year, the plant would be the largest in Europe. Shell previously indicated that the plant could produce enough renewable diesel to avoid 2.8 million tonnes of CO₂ emissions annually.

Construction was already delayed in late 2022. In July 2024, Shell announced a temporary suspension of work to review project delivery and “ensure the future competitiveness of the plant under current market conditions. Now the decision has been taken to permanently halt construction.

“Market dynamics and expected construction costs ultimately make the project insufficiently competitive for us to meet our customers’ demand for affordable biofuels,” said Machteld de Haan, president Downstream, Renewables and Energy Solutions at Shell. “This was a difficult decision, but the right one. We want to focus our investments on projects that deliver value for both our customers and our shareholders.”

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This article was automatically translated from the Dutch language original to English (British).

Author: Nina Koelewijn

Source: MobilityEnergy.com

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