British Shell refuses to build a biofuel plant in Rotterdam

The British oil and gas company Shell has refused to resume the construction of a biofuel plant in Rotterdam after an analysis showed that it was not competitive. About writes Reuters.

Construction was suspended in July 2024 due to unfavorable market conditions.

The project for the plant, which was to produce 820,000 tons of biofuel per year, was approved in September 2021. The launch was planned for 2025.

"After assessing the market situation and completion costs, it became clear that the project would not be competitive enough to meet customer needs for affordable low-carbon products," said Machteld de Haan, President of Shell Downstream, Renewables and Energy Solutions.

She called the abandonment of construction "a difficult but right decision," as the company should focus investments on projects that meet both customer needs and shareholder returns.

Like other major oil corporations, Shell has recently been moving away from large-scale renewable energy projects and returning to its core business of extracting and producing traditional energy.

• In May, Bloomberg, citing its own sources, wrote that Shell considers buying BP.
• On June 25, The Wall Street Journal reported on the talks between the two companies, citing sources.
• Shell is officially dismissed rumors that he was in talks with BP about a merger. A Shell representative said that the company is focused on its own operations, not on growth through large acquisitions.