Shell pivot to oil continues as biofuel plant axed

(Sharecast News) - Shell continued its pivot away from green energy on Wednesday when it axed construction of a facility in Rotterdam that would have been a major supplier of cleaner aviation fuel. The energy giant stopped construction in July last year citing weak market conditions. Original plans in 2021 had approved development of the plant to produce 820,000 tonnes of sustainable aviation fuel and biodiesel a year.

"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," said Machteld de Haan, Shell's Downstream, Renewables and Energy Solutions president.

"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," Haan said.

Most oil majors have been getting rid of renewable projects and shifting back to more polluting fossil fuel production in the race for higher profits. Shell also cancelled a SAF project on Singapore's Bukom Island in March 2023 and in March last year watered down a key emissions target, setting out a plan to reduce the carbon emissions intensity of the energy it sells by 15-20% by the end of the decade compared with a previous goal of 20%.

Reporting by Frank Prenesti for Sharecast.com