Shell Nederland Raffinaderij B.V., a subsidiary of Shell plc, has announced the temporary pause of on-site construction work at its 820,000 tonnes a year biofuels facility at the Shell Energy and Chemicals Park Rotterdam in the Netherlands. This decision aims to address project delivery and ensure future competitiveness given current market conditions. The pause will lead to a reduction in contractor numbers on-site and a slowdown in activity to control costs and optimize project sequencing.
Huibert Vigeveno, Shell’s Downstream, Renewables and Energy Solutions Director, stated, “Temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project.” This move aligns with Shell's commitment to achieving net-zero emissions by 2050, with low-carbon fuels as a key part of its strategy to help decarbonize profitably.
Shareholders have the option to receive their dividends in US dollars, euros, or pounds sterling. The dividend will be payable on March 28, 2022, to those members whose names were on the Register of Members on February 18, 2022. With Shell’s tax residence moved to the UK, dividends paid to shareholders on their ordinary shares will not attract Dutch dividend withholding tax.
Following the decision to pause on-site construction, an impairment review will be conducted for this project, with further guidance to be included in Shell’s second-quarter update note scheduled for publication on Friday, July 5, 2024. The facility, designed to produce sustainable aviation fuel and renewable diesel made from waste, had its final investment decision made in September 2021. Shell plans to invest $10-$15 billion across 2023-2025 to support the development of low-carbon energy solutions, including e-mobility, low-carbon fuels, renewable power generation, hydrogen, and carbon capture and storage.
Shell is one of the world’s largest energy traders and blenders of biofuels, with a significant presence in the production of second-generation ethanol and sugar cane ethanol through its Raizen joint venture in Brazil. The company's commitment to sustainability and low-carbon energy solutions remains at the forefront of its strategic investments and operations.