Shell Shares Dip as Rotterdam Biofuels Project Abandoned Amid Strategic Shift to Low-Carbon Focus and Share Buybacks Despite 397th Trading Volume Rank

Shell (SHEL) fell 0.59% on September 4, 2025, with a trading volume of $0.27 billion, ranking 397th in market activity. The decline came amid the company’s announcement to abandon its Rotterdam biofuels project, citing commercial viability concerns. Shell Nederland Raffinaderij B.V. cited evolving market conditions and cost evaluations as key factors in the decision, shifting focus to projects that better align with customer demand for affordable low-carbon solutions and shareholder returns. The Rotterdam facility, initially planned for 820,000 metric tons of annual biofuel production, had been paused in 2023 for reassessment.

Shell emphasized its continued commitment to low-carbon initiatives, including $8 billion in 2023–2024 investments in power, carbon capture, hydrogen, and biofuels. The Netherlands remains a strategic hub for its transition, with €6.5 billion allocated to projects like Porthos CCS and Holland Hydrogen 1. Despite the Rotterdam project’s cancellation, Shell highlighted its role as a leading SAF supplier, trading over 10 billion liters of low-carbon fuels in 2024. The company also reported progress on the Northern Lights CCS project in Norway, underscoring its dual focus on traditional and renewable energy systems.

On September 4, Shell executed a share repurchase program, buying 1.46 million shares across multiple venues, including the London Stock Exchange and Chi-X. The purchases, part of a broader buy-back initiative announced July 31, 2025, were conducted at prices ranging from £26.78 to £27.01 per share. The move reflects ongoing efforts to return capital to shareholders amid strategic realignments.

Backtesting data shows SHEL’s total return for the year to date (YTD) stands at +20.76%, outperforming the FTSE 100’s +12.77%. Over three years, the stock has surged +53.16%, compared to the benchmark’s +26.58%. These figures highlight Shell’s resilience amid sector volatility and its ability to capitalize on energy transition investments.