Shell Halts Rotterdam Biofuels Project After Cost Review

Shell has halted plans to resume construction of its biofuels facility in Rotterdam after a commercial and technical review showed the project would be insufficiently competitive. The Netherlands remains a core market for the company, which has invested 6.5 billion euros in energy transition projects there. Shell's CEO warned that weakness in the chemicals markets could persist for a long time.

Shell has announced that it will not resume construction of its biofuels facility at the Shell Energy and Chemicals Park in Rotterdam, following a commercial and technical review that deemed the project insufficiently competitive [1]. This decision comes after the company had previously suspended the project in 2024 due to weak market conditions and the high cost of completion [2].

The biofuels plant was intended to produce sustainable aviation fuel (SAF) and diesel from waste, with over half of its capacity dedicated to SAF production [2]. The project was initially announced in 2021 as part of Shell's plans to help Europe meet its emissions reduction targets. However, the company has since shifted its focus towards its fossil fuels business, a move that has drawn criticism from environmental activists [2].

Shell's CEO warned that weakness in the chemicals markets could persist for a long time, contributing to the company's decision to halt the biofuels project [1]. The company has invested 6.5 billion euros in energy transition projects in the Netherlands, but the Netherlands remains a core market for Shell, and the company continues to explore opportunities there [1].

In addition to halting the biofuels project, Shell is also exploring the sale of its 16.67% stake in the A$34 billion ($22 billion) North West Shelf liquefied natural gas (LNG) export plant in Western Australia [3]. The company is testing the market for possible buyers, as it plans to transition the facility into a third-party tolling model, which does not align with Shell's broader strategy [3].

Shell's decision to halt the biofuels project and explore the sale of its stake in the North West Shelf LNG plant reflects the company's ongoing reassessment of its portfolio and capital allocation strategy. The company continues to work closely with its partners to deliver value and maximize future performance [3].

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_FWN3UP11J:0-shell-drops-plan-to-resume-biofuels-facility-construction-in-rotterdam/
[2] https://tribune.net.ph/2025/09/03/shell-abandons-huge-biofuel-project-in-netherlands
[3] https://www.worldoil.com/news/2025/9/4/shell-considering-selling-3-billion-stake-in-australia-lng-plant/