Shell pauses construction of European biofuels facility due to market conditions
Shell Nederland Raffinaderij, a subsidiary of Shell plc, is taking measures to temporarily pause on-site construction work at its 820,000 tonnes/year biofuels facility at the Shell Energy and Chemicals Park Rotterdam in the Netherlands 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 optimise project sequencing.
“Temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project,” said Huibert Vigeveno, Shell’s Downstream, Renewables and Energy Solutions Director.
“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,” added Vigeveno. “And we will continue to use shareholder capital in a measured and disciplined way, delivering more value with less emissions.”
· Following the decision to pause on-site construction, an impairment review will be conducted for this project. Further guidance will be included in Shell’s second quarter update note scheduled for publication on Friday, July 5, 2024.
· Shell took a final investment decision for the planned biofuels facility in September 2021. The facility is designed to produce sustainable aviation fuel (SAF) and renewable diesel made from waste. Additional information regarding project status and timelines will be communicated in future updates.
· Shell is one of the world’s largest energy traders and blenders of biofuels. Through its Raizen joint venture in Brazil, Shell is the largest producer of second-generation ethanol and the leading sugar cane ethanol producer globally.
· As announced at Capital Markets Day in June 2023, Shell plans to invest US$10-$15 billion across 2023-2025 to support the development of low-carbon energy solutions including e-mobility, low-carbon fuels, renewable power generation, hydrogen, and carbon capture and storage.
