Shell has announced a temporary pause on the construction of a biofuel plant in Rotterdam, Netherlands, which started in 2021. The plant, which was set to convert waste into green jet fuel and biodiesel by 2025, faced technical difficulties, prompting the pause. The facility was expected to produce up to 820,000 tonnes of biofuels annually, with half designated for sustainable aviation fuel (SAF). SAF, made from waste cooking oil and animal fat, is considered essential for reducing airline carbon emissions.
The project suspension is a setback for Shell’s energy transition efforts. Shell previously canceled an SAF project in Singapore last year. Shell CEO, Wael Sawan, indicated a strategic shift towards more profitable oil projects and expanding the gas business due to higher global oil and gas prices following Russia’s invasion of Ukraine. This realignment includes reducing staff focused on low-carbon solutions by around 200 roles with another 130 positions under review.
In related industry news, Louis Dreyfus Co. commenced construction of a soybean processing plant in Upper Sandusky, Ohio, capable of crushing 1.5 million tonnes of soybeans annually by March 2026. This facility aims to strengthen LDC’s position in the edible oil, animal feed, and renewable energy markets.
Additionally, the Bureau of Ocean Energy Management (BOEM) approved the construction of New England Wind projects, owned by Avangrid, near Martha’s Vineyard. Comprised of New England 1 and New England 2, the projects will provide 2,600 megawatts of energy, powering over 900,000 homes annually. The approval follows the recent green light for Ørsted’s Sunrise Wind project.