Shell announced on Tuesday that it is suspending plans to build a biofuel plant in the Netherlands to seek to reduce the cost of the project.
Huibert Vigevo, head of downstream, renewable energy and energy solutions at Shell, said in a statement: “The temporary suspension of on-site construction will allow us to evaluate the most commercially valuable way of the future of the project.”
Located at Shell's energy and chemical complex in Rotterdam, the project will process 820,000 tons of sustainable aviation fuel and renewable diesel each year. According to the statement, suspending construction on site will help the company “control costs and optimize project sequencing.” The company will provide guidance in Friday's trading update on whether the move will result in asset depreciation.
Vigeveno said Shell remains committed to achieving net zero emissions by 2050, while “using shareholder capital in a controlled and disciplined manner to create more value with less emissions.”