Shell plc on July 2 announced it will temporarily pause on-site construction work on a biorefinery in the Netherlands “to address project delivery and ensure future competitiveness given current market conditions.” 

The biorefinery, under development by Shell Nederland Raffinaderij B.V., a subsidiary of Shell plc, is located at Shell Energy and Chemicals Park in Rotterdam. If completed as originally planned, the facility would have the capacity to produce 820,000 metric tons per year of sustainable aviation fuel (SAF) and renewable diesel.

Shell announced in September 2021 a final investment decision on the project. At that time, the biorefinery was expected to begin operations in 2024. 

As a result of the decision to pause development of biorefinery, Shell said contractor numbers will reduce on site and activity will slow down, helping to control costs and optimize project sequencing. 

 “Temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project,” said Huibert Vigeveno, Shell’s downstream, renewables and energy solutions director.

“We are committed to our target of achieving net-zero emissions by 2050, with low-carbon fuels as a key part of Shell’s strategy to help us and our customers profitably decarbonize,” Vigeveno added. “And we will continue to use shareholder capital in a measured and disciplined way, delivering more value with less emissions.”