The oil company Shell is abandoning plans to build a biofuel plant in Rotterdam. The company announced this in a press release on Wednesday.
The plant was supposed to convert waste products such as cooking oil and grease into SAF (Sustainable Aviation Fuel, ed.), an alternative aviation fuel that is supposed to lead to reduced emissions. Shell launched the project in 2021. But now the British oil and gas company estimates that there is not enough money in it.
- While we have reviewed the market dynamics and the costs of completion, it is clear that the project will not be sufficiently competitive to meet our customers' needs for affordable low-emission products, says Machteld de Haan, Shell's head of renewable energy.
Previously, Shell has dropped a similar SAF project in Singapore in March 2023, writes The Guardian.
The project in Rotterdam was originally supposed to have started operating in April 2024. Later it was pushed to 2025 - and now it has been dropped completely. More than half of the plant's capacity was to be used to produce SAF.
- It was a difficult decision, but the right one, as we prioritize our capital for projects that meet our customers' needs and create value for our shareholders, says Machteld de Haan.
The project was launched at the time as one that would help Europe meet its binding targets to reduce emissions. In 2023, aviation accounted for around 2.5 percent of global energy-related emissions. The International Energy Agency, IEA, writes on its website.
Airlines have expressed frustration that SAF is too expensive and difficult to access, writes the AFP news agency.
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