Shell Pauses Construction at Netherlands Biofuels Facility — Update

By Michael Susin and Christian Moess Laursen

Shell will pause construction work at its biofuels facility in Rotterdam, the Netherlands as it seeks to cut costs in pursuit of better returns for investors.

The British energy major said its Dutch subsidiary will conduct an impairment review of the Shell Energy and Chemicals Park project and will provide further details in its second-quarter update due to be published Friday.

The company said Tuesday that the pause will reduce the number of contractors on site and activity will slow, helping to control costs.

"Temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project," Shell downstream, renewables and energy solutions director Huibert Vigeveno said.

Shell Chief Executive Wael Sawan recently loosened the company's target for carbon-emission cuts from its operations in a push to increase investor returns.

The facility was set to produce 820,000 metric tons of biofuels a year, including sustainable aviation fuel and renewable diesel made from waste such as cooking oil.

Shell said it remains committed to the target of achieving net-zero emissions by 2050, with low-carbon fuels being part of its strategy.

Write to Michael Susin at michael.susin@wsj.com and Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

July 02, 2024 04:45 ET (08:45 GMT)

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