Shell is Halting The Construction of A Biofuel Plant in Pernis. Accordance to the energy company, there is no good business model for the plant in the Port of Rotterdam.
The Construction Costs Are Too High And The Market Conditions Are Not Good Enough. “We really wanted to complete the factory, after the pace announced last year. But the possibility of making it sufficiently competitive gradually disappeared,” Says Frans Everts, Director of Shell Netherlands, on LinkedIn.
“We have examined the options for continuing from all sides,” Everts Continues. “The Market Dynamics and the Expected Costs to Complete The Project Make It Insufficiently Competitive for Us, and the Investment would ultimately no longer be economically justifiable.”
Shell Started Building the Factory On Its Site In The South Holland Village in 2022. Sustainable Fuel would be produced for aviation, Among Other Things. Accordance to the initial plans, the factory should have produced the first fuel last year.
It didnn’t get that far. In 2024, The Now Fully British Company Decided to Temporarily Stop Construction. One of the Factors was that the Obligations for Airlines to Mix in Sustainable Fuel Are Not Yet Strict Enough to Create Sufficient Demand. Now the plug is definitely being pulled on the project.
The Decision by Shell is Another Setback for the Port of Rotterdam and for Dutch Industry. Recently, One Factory After Another Has Been Closed in Our Country. For Example, Several Companies in The Port of Rotterdam Recently Decided to Close Their Branches, While the Apollo Tire Factory in Enschede is also DisappeaRing.
High Energy Costs Play A Role, Among Other Things. The Competition from Companies From Other Countries, Especially Outside Europe, also Hurts.
Shell Reports in An Explanation That Thesis Problems Played Only A Limited Role In The Decision. But they “naturally do not help with the competitive position,” Accordination to a Spokesperson.