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Shell Cancels Rotterdam Biofuels Plant After Competitiveness Review

The company says a review of costs plus market conditions showed the unfinished facility would not deliver affordable low‑carbon fuels.

Overview

  • Construction, launched in 2021, was paused in July 2024 over technical issues before Shell decided not to restart work.
  • The plant was designed for up to 820,000 tonnes a year of biofuels with roughly half earmarked for sustainable aviation fuel made from waste oils and animal fat.
  • Shell disclosed a significant second‑quarter impairment last year tied to the suspension, following an earlier sustainable aviation fuel project cancellation in Singapore.
  • Executives framed the move as reallocating capital to higher‑return projects, while maintaining a large biofuels trading business.
  • The decision tightens prospective SAF supply as EU rules ramp up usage requirements, with airlines citing high costs and scarce availability.