Shell has reportedly halted the construction of one of Europe’s largest biofuel plants which was expected to convert waste into green jet fuel and biodiesel by the end of the decade.
On Tuesday, the oil company said that it would “temporarily pause” work on one of its biggest energy transition projects to address the technical difficulties that have delayed its progress so far.
Recall that Shell began constructing the plant, based in Rotterdam in the Netherlands, in 2021, and had initially expected to start producing up to 820,000 tonnes of biofuels a year in April, before this was pushed back to 2025.
About half of the plant’s biofuels were to be used for sustainable aviation fuel (SAF) made from waste cooking oil and animal fat. The fuel is seen by some as crucial if airlines are to cut their carbon emissions in line with global climate targets.
The nascent industry has also attracted criticism from those who claim that SAF is not a realistic replacement for paraffin-based aviation fuels within the timescale needed to prevent rising carbon emissions from creating a climate catastrophe.
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“We’re taking the tough decision now to temporarily pause on-site construction,” a Shell spokesperson said. “This gives us the opportunity to take stock, complete engineering, optimise project sequencing and in doing so maintain capital discipline.”
The spokesperson added: “Low-carbon fuels form a key part of Shell’s ambitions to provide affordable and sustainable products to our customers.”
The aviation industry accounts for 3% of the world’s carbon emissions, and is seen as one of the most difficult forms of transportation to decarbonise.
The decision to pause the work deals another blow to Shell’s biofuels plans after the company cancelled an SAF project at Singapore’s Bukom Island in March last year.
Shell was considering investment in a plant that could produce 550,000 tonnes of SAF a year to supply major Asian hubs such as Hong Kong International airport and Singapore’s Changi.
Story was adapted from the Guardian.
