Shell Cancels Major Dutch Biofuel Plant, Shifts Focus to Fossil Fuels

Rotterdam, Netherlands – British oil giant Shell has announced it is abandoning construction of one of Europe’s largest biofuel plants in the Netherlands, as the company shifts its focus back to fossil fuels.

The Rotterdam project, aimed at producing sustainable aviation fuel (SAF) and diesel from waste, was suspended last year due to weak market conditions.

“As we evaluated market dynamics and the cost of completion, it became clear that the project would be insufficiently competitive,” said Machteld de Haan, Shell’s president of downstream, renewables, and energy solutions.

Originally announced in 2021, the plant was part of Europe’s efforts to meet strict emissions reduction targets. More than half of its capacity was planned for SAF, a biofuel made from plant and animal materials, including cooking oils and fats, which produces lower carbon emissions than traditional jet fuel.

The EU requires airlines to gradually increase the use of SAF, but airlines have complained that it is still expensive and not widely available.

Shell, along with UK rival BP, has been scaling back climate-focused projects in favor of oil and gas production, a move criticized by environmental activists. Last year, Shell also warned investors that the halted project led to a significant financial write-down in its second-quarter results.