Shell Stops Work On Rotterdam Biofuels Facility - CleanTechnica

Shell has officially abandoned its biofuels facility project in Rotterdam, which began construction in 2021 and was poised to become one of Europe’s largest producers of sustainable aviation fuel (SAF) and biodiesel. The company cited unfavorable market conditions and high costs relative to fossil fuels as the primary reasons for halting the project. Despite broad environmental consensus on the benefits of SAF, airlines have been reluctant to adopt it widely due to its higher price. Shell’s downstream renewables president, Machteld de Haan, emphasized that the decision was driven by competitiveness concerns and a focus on shareholder value, though the company still supports biofuels as part of the future energy mix. The Rotterdam facility was aligned with the European Union’s emissions reduction goals, but Shell’s withdrawal reflects a broader trend of major oil companies scaling back climate initiatives in favor of traditional oil and gas production, drawing criticism from environmental groups. The article highlights a key economic challenge: fossil fuels benefit from indirect government subsidies by not accounting for the