(Reuters) -Shell will not resume construction of a biofuels facility at its Shell Energy and Chemicals Park in Rotterdam after an in-depth evaluation found it would not be competitive, the company
Shell scraps plans for biofuels facility in Rotterdam
(Reuters) -Shell will not resume construction of a biofuels facility at its Shell Energy and Chemicals Park in Rotterdam after an in-depth evaluation found it would not be competitive, the company said on Wednesday.
The project's construction was paused in July 2024 due to weak market conditions. Shell in September 2021 had approved the development of the plant to produce 820,000 metric tons per year and had planned to bring it online in 2025.
"As we evaluated market dynamics and the cost of completion, it became clear that the project would be insufficiently competitive to meet our customers' need for affordable, low carbon products," said Machteld de Haan, Shell's Downstream, Renewables and Energy Solutions President.
"This was a difficult decision, but the right one, as we prioritise our capital towards those projects that deliver both the needs of our customers and value for our shareholders," Haan said.
Along with other major oil companies, Shell has been shifting away from renewable projects and back to its traditional expertise of fossil fuel production.
(Reporting by Anmol Choubey and Brijesh Patel in Bengaluru; editing by Barbara Lewis)
