Shell Nederland Raffinaderij B.V., a subsidiary of Shell plc, has announced it will not resume construction of its biofuels facility at the Shell Energy and Chemicals Park in Rotterdam. The project, which commenced in 2022, was halted following a detailed commercial and technical reassessment that deemed it uncompetitive in the current market environment.
Machteld de Haan, Shell’s Downstream, Renewables and Energy Solutions President, 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 our capital towards those projects that deliver both the needs of our customers and value for our shareholders”
“We continue to believe that low carbon molecules, including biofuels, will underpin the future energy system. Shell is at the forefront of this industry and its development as one of the world’s largest traders and suppliers of biofuels, including Sustainable Aviation Fuel (SAF),” said De Haan.
Continued investment in energy transition
Shell is actively pursuing its strategy to lead in the global energy transition and position itself as the investment and partner of choice. Between 2023 and 2024, the company invested $8 billion in lower-carbon energy solutions, including power, carbon capture and storage (CCS), hydrogen, and low-carbon fuels.
In 2024 alone, Shell traded over 10 billion litres of low-carbon fuels, ten times more than it produced, and emerged as one of the world’s leading suppliers of SAF.
The Netherlands Remains a Strategic Hub
Shell reiterated its long-term commitment to the Netherlands, which continues to play a pivotal role in the company’s energy portfolio. Shell’s Dutch operations span the entire energy value chain, from upstream oil and gas production to a wide network of retail sites.
Over recent years, Shell has invested €6.5 billion in Dutch energy transition initiatives. These include the Porthos CCS project for carbon dioxide storage, Holland Hydrogen 1 for renewable hydrogen production, and sustainability upgrades at Shell Chemicals Park Moerdijk, such as the installation of new furnaces and electrification of key manufacturing processes.
