Shell shelves plans for biofuel plant in Netherlands

Against the back of rising costs, oil/gas giant Shell plc has decided not to restart construction of its planned biofuels facility at the Shell Energy and Chemicals Park in Rotterdam, which began in 2022. The plant was to become one of Europe’s biggest for sustainable aviation fuel (SAF) and renewable diesel made from waste, with SAF initially projected to make up more than half of the site’s production.

After an interim suspension of works on the planned 820,000-tonnes/year biofuels plant last year to reassess the project’s competitiveness, Shell has said recently that following an in-depth commercial and technical evaluation to reassess the project’s competitiveness, it will no longer proceed with the project.

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 SAF,” said De Haan.

Even so, between 2023 and 2024, the oil firm has invested US$8 billion in lower carbon options, including power, carbon capture and storage (CCS), hydrogen and low-carbon fuels. In 2024, tt traded over 10 billion l of low carbon fuels and sold ten times more than it produced. In the same year. Shell says it became one of the world’s leading suppliers of SAF.

As well, Shell has invested EUR6.5 billion across a wide range of energy transition projects in the Netherlands. This includes enabling CO2 storage through the Porthos CCS project, developing renewable hydrogen at Holland Hydrogen 1, and installing new furnaces and the electrification of key manufacturing processes at Shell Chemicals Park Moerdijk.

In 2024, Shell became one of the world’s largest traders and suppliers of sustainable aviation fuel with close to 20% of the total sales in North America and Europe.

Shell is partnering with Accenture and American Express GBT to develop the open blockchain-enabled Avelia platform that is helping to support the supply and demand for SAF. As of 31 March 2025, more than 57 corporations and airlines have made transactions through Avelia with over 33 million gallons of SAF injected into the existing fuel network.

·Furthermore, Shell is delivering some of the lowest carbon intensity biofuels available today including bioethanol through its Raizen joint venture in Brazil (Shell interest 44%), it adds.

In 2022, Shell acquired waste recycling company EcoOils which produces advanced biofuels feedstock at its facilities in Malaysia and Indonesia. EcoOils deploys cutting-edge recycling technology to divert waste away from landfill and produce Spent Bleaching Earth Oil (SBEO) and Refined Palm Oil Mill Effluent (R-POME), both internationally recognised and accredited feedstocks.

Shell acquired Nature Energy in 2023 and today has 14 biogas plants in Europe and a further 3 facilities in US.

Outside of the biofuels sector, Shell currently has one renewable hydrogen electrolyser in operation 10MW Refhyne 1 (Germany); and two renewable hydrogen electrolysers under-construction, 100MW Refhyne 2 (Germany) and 200MW Holland Hydrogen 1 (Netherlands) both due to start commissioning in 2026.

Shell also has more than 70,000 public EV charge points globally.

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