European Chemical Industry News & Insights

Shell Pauses Construction of Rotterdam Biofuels Facility

At a glance
  • Shell Nederland Raffinaderij B.V. pauses construction at its 820,000 tonnes/year biofuels facility in Rotterdam.
  • Contractor numbers will reduce on site, slowing activity to control costs.
  • The pause aims to assess the most commercial way forward for the project.

Project Pause

Shell Nederland Raffinaderij B.V. has decided to temporarily halt on-site construction at its biofuels facility in Rotterdam. The facility, located at the Shell Energy and Chemicals Park, has a production capacity of 820,000 tonnes per year. This decision is driven by the need to address project delivery and ensure future competitiveness in light of current market conditions.

Cost Control and Optimization

As a consequence of the pause, the number of contractors on site will be reduced, and overall activity will slow down. This approach aims to control costs and optimize the sequencing of the project. By taking these steps, Shell intends to manage its resources more effectively and align the project with market realities.

Future Assessment

Huibert Vigeveno, Shell’s Downstream, Renewables and Energy Solutions Director, stated that the temporary pause will allow the company to evaluate the most commercially viable path forward for the project. This assessment is crucial for determining the next steps and ensuring the project's long-term success.