Shell Halts On-Site Construction of European Biofuels Facility Temporarily

Shell Nederland Raffinaderij B.V., a subsidiary of Shell plc, has decided to temporarily suspend on-site construction activities at its 820 thousand tonnes per year biofuels facility located at the Shell Energy and Chemicals Park Rotterdam in the Netherlands. This strategic move aims to optimize project delivery and enhance future competitiveness in response to prevailing market conditions.

Consequently, the number of contractors present on site will be reduced, and construction activities will decelerate. This approach is intended to manage costs effectively and streamline project sequencing for optimal efficiency.

Huibert Vigeveno, Shell’s Downstream, Renewables, and Energy Solutions Director, emphasized that the decision to temporarily halt on-site construction at the biofuels facility reflects Shell's strategic approach to optimizing the project's commercial viability. This pause allows Shell to thoroughly assess the project's trajectory in light of current market dynamics, ensuring that future steps align with the company's long-term profitability goals.

Vigeveno reiterated Shell's commitment to achieving net-zero emissions by 2050, highlighting low-carbon fuels as a pivotal component of Shell's broader strategy to facilitate profitable decarbonization for both the company and its customers. This approach underscores Shell's disciplined use of shareholder capital, aiming to deliver enhanced value while concurrently reducing emissions, thereby advancing sustainability objectives in a measured and responsible manner.

Additional details will be provided in Shell’s upcoming second quarter update, slated for release on July 5, 2024. Shell made a definitive investment decision for its biofuels facility in September 2021, aiming to manufacture sustainable aviation fuel (SAF) and renewable diesel sourced from waste materials.

Shell stands at the forefront of global energy trading and biofuel blending, underscored by its strategic Raizen joint venture in Brazil. Through this partnership, Shell not only leads as the world's largest producer of second-generation ethanol but also commands the top position in sugarcane ethanol production on a global scale. This positioning aligns with Shell's robust commitment to sustainable energy solutions, as highlighted during its Capital Markets Day in June 2023. The company has earmarked a substantial investment range of $10 to $15 billion for the period spanning 2023 to 2025. This funding is geared towards advancing diverse low-carbon energy initiatives, encompassing e-mobility, low-carbon fuels, renewable power generation, hydrogen technology, and carbon capture and storage.

At the heart of Shell's investment strategy lies a proactive approach to shaping the future of energy. By focusing on innovative solutions that reduce carbon footprints across sectors, Shell aims to foster a sustainable energy ecosystem. This strategic vision not only reinforces Shell's leadership in energy trading and biofuels but also underscores its pivotal role in steering global energy transitions towards a greener future. Through collaborations and advancements in renewable energy technologies, Shell remains steadfast in its mission to drive impactful change, setting benchmarks in sustainable practices that resonate across the industry and beyond.