Shell Nederland Raffinaderij B.V., a subsidiary of Shell plc, has confirmed it will not restart construction of its planned biofuels facility at the Shell Energy and Chemicals Park in Rotterdam. The project, which began in 2022, has been scrapped following a detailed commercial and technical reassessment of its competitiveness.
Machteld de Haan, Shell’s Downstream, Renewables and Energy Solutions President, said the decision was made after weighing market conditions and costs. “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,” she said.
De Haan emphasised Shell’s continued commitment to biofuels despite the cancellation. “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),” she added.
Shell has stepped up investment in energy transition projects globally, putting more than US$8 billion into lower-carbon options between 2023 and 2024. These include power, carbon capture and storage (CCS), hydrogen and low-carbon fuels. In 2024, the company traded over 10 billion litres of low-carbon fuels, selling ten times more than it produced, and established itself as one of the world’s leading suppliers of SAF. The Netherlands remains a central hub for Shell’s operations.
In recent years, the company has invested €6.5 billion in the country across a wide portfolio of transition projects. These include the Porthos CCS project, the Holland Hydrogen 1 development, and upgrades at Shell Chemicals Park Moerdijk, such as installing new furnaces and electrifying manufacturing processes.
