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Shell to pause on-site construction of Rotterdam biofuels facility

Shell to pause on-site construction of Rotterdam biofuels facility
An aerial view of Shell Energy and Chemicals Park Rotterdam (aka Pernis Refinery), the Netherlands (photo courtesy Shell).

Global oil, gas, and energy major Shell plc has announced that its subsidiary, Shell Nederland Raffinaderij B.V., is to temporarily pause on-site construction work at its 820,000 tonnes a 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.

Temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project. 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. And we will continue to use shareholder capital in a measured and disciplined way, delivering more value with fewer emissions, said Huibert Vigeveno, Director of Downstream, Renewables, and Energy Solutions at Shell.

Shell took a final investment decision (FID) for the planned advanced biofuels facility at its Energy and Chemicals Park Rotterdam in September 2021.

The facility is designed to produce sustainable aviation fuel (SAF) and renewable diesel made from waste.

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