Shell to temporarily pause construction of Rotterdam renewable diesel, SAF facility

Shell announced July 2 that its subsidiary, Shell Nederland Raffinaderij B.V., is temporarily pausing on-site construction work at its 820,000-ton-per-year (approximately 275-million-gallon-per-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 optimize project sequencing, Shell stated.

“Temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project,” said Huibert Vigeveno, director of Shell’s downstream, renewables and energy solutions.

“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 decarbonize,” Vigeveno added. “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 July 5.

Shell made 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.

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 sugarcane-ethanol producer globally.

As announced in June 2023, Shell plans to invest $10 billion to $15 billion across 2023-’25 to support the development of low-carbon energy solutions including e-mobility, low-carbon fuels, renewable power generation, hydrogen, and carbon capture and storage.