Shell Halts Construction Of Rotterdam Biofuels Plant
Shell Nederland Raffinaderij B.V., a subsidiary of Shell plc, has decided not to resume construction of its planned biofuels facility at the Shell Energy and Chemicals Park in Rotterdam, originally launched in 2022. After a thorough commercial and technical review, Shell concluded that the project would not be sufficiently competitive in the current market.
Machteld de Haan, Shell’s President of Downstream, Renewables and Energy Solutions, said: “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. This was a difficult decision, but the right one, as we prioritise capital towards projects that deliver both customer value and shareholder returns.”
De Haan added that Shell remains committed to low-carbon molecules, including biofuels, which will play a key role in the future energy system. “Shell continues to be a leading trader and supplier of biofuels, including Sustainable Aviation Fuel (SAF).”
Between 2023 and 2024, Shell invested US$ 8 billion in lower-carbon options such as renewable power, carbon capture and storage (CCS), hydrogen and low-carbon fuels. In 2024, the company traded over 10 billion litres of low-carbon fuels and became one of the world’s top SAF suppliers.
The Netherlands continues to be a strategic hub for Shell, which has invested €6.5 billion in energy transition projects, including CO2 storage through the Porthos CCS project, renewable hydrogen at Holland Hydrogen 1, and electrification of manufacturing processes at Shell Chemicals Park Moerdijk.
