Shell Abandons Rotterdam Biofuels Plant Over Market Conditions

Shell has decided to permanently abandon its Rotterdam biofuels plant project after an in-depth review revealed the facility would not be competitive enough to meet customer demands for affordable, low-carbon products. Initially approved in 2021 and expected to start production in 2025, the plant aimed to produce up to 820,000 tonnes of biofuels annually, including sustainable aviation fuel (SAF) made from waste materials. The decision reflects a broader shift by Shell and other major oil companies away from renewable energy projects toward fossil fuel production, driven by challenging market conditions and profitability concerns. Despite this setback, Shell remains committed to low-carbon technologies, investing around $8 billion between 2023 and 2024 in carbon capture, hydrogen, low-carbon fuels, and SAF, while actively trading significant volumes of SAF globally. Shell's leadership emphasized that while the Rotterdam project is discontinued, the company continues to prioritize investments that balance customer needs and shareholder value. The move has drawn criticism from environmentalists who note the company's retreat from climate goals amid rising fossil fuel focus.