Shell cancels plans to build a biofuels plant in Rotterdam

Shell announced on Wednesday that it will not continue construction of the biofuels plant at its Shell Energy and Chemicals Park Rotterdam, after an extensive evaluation revealed that it was not competitive.

Construction of the project was suspended in July 2024 because of weak market conditions. Shell approved in September 2021 the development of the facility to produce 820,000 tons per year, and planned to bring it on line in 2025.

Machteld de Haan is Shell's Downstream President for Renewables and Energy Solutions.

Haan stated that "this was a hard decision, but it was the right choice, because we prioritized our capital to those projects which deliver value to our shareholders and meet the needs of both our customers."

Shell, along with other major oil firms, has shifted away from renewable energy projects to focus on its expertise in fossil fuel production. (Reporting and editing by Barbara Lewis; Anmol Choubey in Bengaluru, Brijesh Patel in Bengaluru)

(source: Reuters)