Shell stops construction work on Dutch biofuel project

Shell will halt construction on its Dutch biofuel project if the market slows. Companies rarely pause progress on ongoing initiatives. Last week, rival BP said it was pausing two biofuel projects in Germany and the U.S. This year, Shell shares have risen more than 11%. Originally scheduled to begin production in 2025, Shell approved construction of the 820,000-ton-per-year plant in the Netherlands in September 2021. The project is currently expected to come online before the end of the decade. The project, at its Rotterdam chemical park, was designed to produce renewable diesel from waste and sustainable aviation fuel. Joshua Stone, an analyst at UBS, said the suspension was in line with Shell’s return-focused approach. “The postponements underscore the difficulty of breaking into the advanced biofuels sector. The oil majors have looked at it and found it difficult,” Stone explained. Shell also said it would take into account the project’s impairment. The company will provide further information in its quarterly trading update on Friday.