Shell to temporarily pause on-site construction of Nederland biofuels facility

Shell has announced a temporary pause in the on-site construction of its 820,000-tonne-a-year biofuels facility at the Shell Energy and Chemicals Park Rotterdam in the Netherlands. The decision was made to reassess project delivery and ensure future competitiveness in light of current market conditions.

The Reason for pause Nederland biofuels facility is that Shell aims to address project delivery challenges and ensure the project’s future competitiveness in the current market.

Contractor numbers will be reduced, and construction activity will slow down to control costs and optimize project sequencing.

An impairment review will be conducted for the project following the pause.

Shell will provide further guidance on the project in its second-quarter update note on July 5, 2024, and additional information on project status and timelines in future updates.

This decision reflects a broader trend in the energy sector, where companies are reevaluating their investments in low-carbon energy projects due to shifting market conditions and economic considerations.

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