Shell suspends construction of its Rotterdam biofuels site

Shell halts construction of its Rotterdam biofuels site to optimize costs and ensure future competitiveness.

Share:

Shell suspend temporairement la construction de son site de biocarburants à Rotterdam.

Subscribe for unlimited access to all energy sector news.

Over 150 multisector articles and analyses every week.

Your 1st year at 99 $*

then 199 $/year

*renews at 199$/year, cancel anytime before renewal.

Shell Nederland Raffinaderij B.V., a subsidiary of Shell plc, has announced the temporary suspension of construction work on its biofuels site at Shell Energy and Chemicals Park Rotterdam in the Netherlands. The purpose of this decision is to reassess the project in terms of cost and sequencing, in the light of current market conditions. This interruption will affect the facility’s 820,000 tonnes of annual biofuel production capacity. As a result, the number of contractors on site will be reduced and activities slowed down, enabling better cost management. A site of vital importance for the future of the company and its renewable fuels objectives.

Reassessment and future of the project

According to Huibert Vigeveno, Director of Shell’s Downstream, Renewables and Energy Solutions business, the pause allows the company to determine the most commercial way to pursue the project. Shell remains committed to prudent and measured management of shareholder capital, aiming to deliver more value with less expense.

Impact on the biofuels market

The suspension of construction in Rotterdam comes against a backdrop of fluctuations in the biofuels market. Optimized management of resources and projects is becoming essential for major energy companies to remain competitive. Shell’s ability to adjust its projects in line with market conditions demonstrates an important strategic flexibility. The biofuels market is constantly evolving, influenced by environmental policies, raw material prices and technological innovations. By adapting its projects, Shell is demonstrating its ability to navigate this complex environment while remaining focused on its financial objectives.

Future prospects

The temporary pause in Rotterdam offers Shell an opportunity to reassess its priorities and reinforce the commercial viability of the project. Today’s decisions could significantly influence the future of the biofuels sector in Europe and beyond. By optimizing costs and adjusting project sequencing, Shell aims not only to maintain its competitiveness, but also to promote a more sustainable energy transition. The success of this project could serve as a model for other similar initiatives in the energy sector.

Mondi SCP will build a new biomass power plant in Ružomberok to boost energy self-sufficiency from 75% to 90% by 2027, with a €120mn ($129mn) investment supported by the European Union’s Modernisation Fund.
With a new EnviThan facility in Aube, EnviTec Biogas reaches 40 units in operation in France and confirms its deployment pace in the biomethane market.
Southwest Gas has submitted an agreement to the California Commission to inject biomethane produced from food and wastewater into its network, in line with SB 1440 regulatory requirements.
Quercus Real Assets and Elionia finalise a €76 mn bank financing to build three biomethane plants in Italy, with 50% of the debt guaranteed by SACE.
VINCI, through its subsidiaries, has established itself in the construction of Spain’s largest second-generation biorefinery, a €1.2bn project aimed at supplying 500,000 tonnes of sustainable fuels per year.
Ameresco commissions a biomethane facility in Lee County, processing 4,500 cubic feet of landfill gas per minute, and directly injects this renewable gas into the transmission network to reduce emissions and strengthen energy security.
A $24mn financing supports the construction of a 4.8 MW biomass plant designed to replace diesel in Opitciwan, bringing jobs and enhanced energy security for the Atikamekw community.
SUEZ and RATP Group formalise a supply contract for 100 GWh of renewable electricity per year, over a maximum period of sixteen years, powering the operations of the world’s third largest urban transport operator.
Valmet has secured a contract to supply a biomass boiler and flue gas cleaning system to Saica Group for its production site in El Burgo de Ebro, Spain, as part of its decarbonisation plan.
Qarlbo Biodiversity signed a memorandum of understanding with Woodland Biofuels for the delivery of thinned pine wood from managed forests in the United States to supply the Canadian company’s biomass operations.
The Canadian group Thermal Energy International has secured a CAD 1.4 million contract to install a heat recovery unit at a European malted barley producer, aiming to reduce energy costs and polluting emissions.
The asset takeover process of Global Bioenergies, under a pre-pack disposal procedure, has been extended until 18 July at noon, following requests from potential bidders seeking additional time to assess the French company's financial situation.
SIAAP and SUEZ have inaugurated a new biogas production unit at the Seine Aval wastewater treatment plant, the largest in Europe, as part of a modernization project to strengthen the energy sovereignty of the Paris region.
Canadian company Hydron Energy will supply its innovative INTRUPTor-Mid technology to produce renewable natural gas in Ontario, marking its first commercial order in the biomethane sector with a promise of significant cost reductions.
US President Donald Trump has ratified a law extending until the end of 2029 the tax credit on renewable natural gas production from biomass and animal manure, aiming to boost the rural economy.
Valmet secures a contract to deliver a bubbling fluidized bed biomass boiler and flue gas handling equipment to Kraftringen Energi's upcoming combined heat and power plant, aimed at strengthening energy supply in Sweden.
Elcimaï Environnement has completed a methanisation unit integrated into Laon's wastewater treatment plant, now enabling the conversion of sludge and bio-waste into biomethane injected into the local grid, meeting the annual energy needs of 1,150 households.
Infrastructure manager Teréga and GRDF inaugurated in Auch, Occitanie, the region’s first biomethane reverse-flow station, designed to facilitate biomethane transfer from the distribution to the transport network, representing an investment of €3mn ($3.27mn).
Eni has inaugurated its first vegetable oil extraction plant in Loudima, Republic of the Congo, marking the country's entry into the global biofuel supply chain for the transport industry.
The city of Toul has officially inaugurated a biomass heating plant operated by ENGIE Solutions, intended to supply heating from wood-energy to over 2,400 local homes starting from the next winter season.

Log in to read this article

You'll also have access to a selection of our best content.

or

Go unlimited with our annual offer: $99 for the 1styear year, then $ 199/year.