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📣 Shell Netherlands Refinery has announced that it will temporarily halt the construction of its biofuels facility in Rotterdam due to weak market conditions. The decision is aimed at reassessing project delivery and ensuring competitiveness in the current economic landscape. This move will result in a reduction of contractors and a slowdown in activities, allowing for better cost control and optimized project sequencing. The biofuels facility, which was initially expected to begin production in 2025, will now have its start date pushed back towards the end of the decade. With a planned annual capacity of 820,000 tons per year, the facility is designed to produce sustainable aviation fuel (SAF) and renewable diesel from waste. This decision reflects the challenging market conditions faced by the energy industry and highlights the need for companies to adapt and make strategic adjustments to remain competitive. By taking a pause and reevaluating project delivery, Shell is ensuring that it can deliver a successful and economically viable biofuels facility in the long run. Stay tuned for further updates on the progress of this project and its impact on the biofuels market. In the meantime, let's continue to support the development of sustainable energy solutions and work towards a greener future! 🌱💚 #Biofuels #RenewableFuture #ShellBiofuelsFacility #SustainableEnergy #energy #renewableenergy

Shell Nederland Raffinaderij B.V., a subsidiary of Shell plc, has decided to temporarily pause on-site construction work at its 820,000 tonnes per year biofuels facility at the Shell Energy and Chemicals Park Rotterdam in the Netherlands.  This decision aims to address project delivery challenges and ensure future competitiveness in light of current market conditions.  As a result, contractor numbers will be reduced on site, and activity will slow down to control costs and optimise project sequencing.  Shell publicly claims it remains committed to achieving net-zero emissions by 2050, with low-carbon fuels playing a key role in their strategy for profitable decarbonisation.  An impairment review will be conducted for this project following the construction pause, and further details will be included in Shell’s second-quarter update note scheduled for publication on 05th July 2024.  The planned biofuels facility is designed to produce sustainable aviation fuel (SAF) and renewable diesel from waste.   Shell’s decision to temporarily pause construction at the biofuels facility in the Netherlands may have implications for its overall sustainability goals.  While the project aims to produce SAF and renewable diesel from waste, the construction challenges and cost control measures could impact the timeline for achieving net-zero emissions by 2050.  It is essential to monitor how this pause aligns with their broader sustainability strategy and whether alternative initiatives will compensate for any delays in low-carbon fuel production. Shell’s decision to pause construction at the biofuels facility in the Netherlands may not directly impact their existing renewable energy portfolio.  Shell has been diversifying its energy mix to include renewables, such as wind, solar, and biofuels, as part of its transition toward a lower-carbon future.  While this specific project is temporarily on hold, Shell’s overall commitment to sustainability publicly remains intact.  Monitoring their future investments and initiatives will provide a clearer picture of how this decision aligns with their renewable energy goals. I am concerned that there is pushback against ESG initiatives within the company. Terence Nunis Terence K. J. Nunis, Consultant President, Red Sycamore Global

Shell Nederland Raffinaderij B.V., a subsidiary of Shell plc, has decided to temporarily pause on-site construction work at its 820,000 tonnes per year biofuels facility at the Shell Energy and Chemicals Park Rotterdam in the Netherlands.  This decision aims to address project delivery challenges and ensure future competitiveness in light of current market conditions.  As a result, contractor numbers will be reduced on site, and activity will slow down to control costs and optimise project sequencing.  Shell publicly claims it remains committed to achieving net-zero emissions by 2050, with low-carbon fuels playing a key role in their strategy for profitable decarbonisation.  An impairment review will be conducted for this project following the construction pause, and further details will be included in Shell’s second-quarter update note scheduled for publication on 05th July 2024.  The planned biofuels facility is designed to produce sustainable aviation fuel (SAF) and renewable diesel from waste.   Shell’s decision to temporarily pause construction at the biofuels facility in the Netherlands may have implications for its overall sustainability goals.  While the project aims to produce SAF and renewable diesel from waste, the construction challenges and cost control measures could impact the timeline for achieving net-zero emissions by 2050.  It is essential to monitor how this pause aligns with their broader sustainability strategy and whether alternative initiatives will compensate for any delays in low-carbon fuel production. Shell’s decision to pause construction at the biofuels facility in the Netherlands may not directly impact their existing renewable energy portfolio.  Shell has been diversifying its energy mix to include renewables, such as wind, solar, and biofuels, as part of its transition toward a lower-carbon future.  While this specific project is temporarily on hold, Shell’s overall commitment to sustainability publicly remains intact.  Monitoring their future investments and initiatives will provide a clearer picture of how this decision aligns with their renewable energy goals. I am concerned that there is pushback against ESG initiatives within the company. Terence Nunis Terence K. J. Nunis, Consultant President, Red Sycamore Global

Shell Nederland Raffinaderij B.V., a subsidiary of Shell plc, has decided to temporarily pause on-site construction work at its 820,000 tonnes per year biofuels facility at the Shell Energy and Chemicals Park Rotterdam in the Netherlands.  This decision aims to address project delivery challenges and ensure future competitiveness in light of current market conditions.  As a result, contractor numbers will be reduced on site, and activity will slow down to control costs and optimise project sequencing.  Shell publicly claims it remains committed to achieving net-zero emissions by 2050, with low-carbon fuels playing a key role in their strategy for profitable decarbonisation.  An impairment review will be conducted for this project following the construction pause, and further details will be included in Shell’s second-quarter update note scheduled for publication on 05th July 2024.  The planned biofuels facility is designed to produce sustainable aviation fuel (SAF) and renewable diesel from waste.   Shell’s decision to temporarily pause construction at the biofuels facility in the Netherlands may have implications for its overall sustainability goals.  While the project aims to produce SAF and renewable diesel from waste, the construction challenges and cost control measures could impact the timeline for achieving net-zero emissions by 2050.  It is essential to monitor how this pause aligns with their broader sustainability strategy and whether alternative initiatives will compensate for any delays in low-carbon fuel production. Shell’s decision to pause construction at the biofuels facility in the Netherlands may not directly impact their existing renewable energy portfolio.  Shell has been diversifying its energy mix to include renewables, such as wind, solar, and biofuels, as part of its transition toward a lower-carbon future.  While this specific project is temporarily on hold, Shell’s overall commitment to sustainability publicly remains intact.  Monitoring their future investments and initiatives will provide a clearer picture of how this decision aligns with their renewable energy goals. I am concerned that there is pushback against ESG initiatives within the company. Terence Nunis Terence K. J. Nunis, Consultant President, Red Sycamore Global

#Shell is focused on a variety of #biofuels as part of its #energy #transition #strategy¹². Here are some key points: - **#Renewable Natural Gas (RNG)**: Shell acquired Nature Energy, the largest producer of RNG in Europe, and has around 30 new plant projects in the pipeline in Europe and the USA¹. RNG, or biomethane, can be used in transmission and distribution infrastructure, and for heating, cooking, and combined heat and power generation². - **#Sustainable #Aviation Fuel (SAF)**: Shell became the first company to supply #SAF to customers in Singapore in February 2022¹. SAF can help to significantly reduce emissions from flying². - **#Biodiesel and #Bioethanol**: Shell is one of the world's largest traders and blenders of biofuels¹. In 2022, around 9.5 billion litres of biofuels went into Shell’s fuels worldwide¹. - **Bio-LNG**: Shell began construction of a bio-LNG plant at the Energy and Chemicals Park Rheinland in Germany¹. Once operational, the plant will produce 100,000 tonnes of bio-LNG each year¹. - **Ethanol from Sugarcane Waste**: Shell's Brazilian joint venture Raízen is one of the world's largest biofuels producers¹. Shell announced an agreement with Raízen to buy 3.25 billion litres of ethanol made from sugar-cane waste¹. Shell aims to be a significant and profitable supplier of sustainable low-carbon fuels to help decarbonise harder-to-abate sectors including aviation, marine, and commercial road transport³. Source: (1) Biofuels - Shell Energy Transition Progress Report 2022. https://lnkd.in/gDaazazS. (2) Sustainable biofuels | Shell Global. https://lnkd.in/gySUxKQb. (3) Biofuels - Shell Sustainability Report 2023. https://lnkd.in/g3fvJ6DT. (4) Shell: Europe's biggest oil firm sets out carbon neutral plans - BBC. https://lnkd.in/gxpHhNmZ. (5) Shell: Europe's biggest oil firm sets out carbon neutral plans. https://lnkd.in/gSCyCN9x.

In light of shareholder’s demanding more divendes distribution, these energy transaction projects will continue to be challenged. This is coupled with customers looking for more competitive options for fuel sources.

Shell’s decision to pause the construction of its huge biofuel plant in Rotterdam follows bp’s decision to halt two projects in Germany and the U.S. For Shell this raises a question about the energy transition strategy - it has scrapped many offshore wind, solar, hydrogen and power businesses and projects in recent months, so if biofuels don’t work, what’s left in the low-carbon portfolio to grow and help reduce its net greenhouse gas emissions?

We have had announcements from Shell and BP have announced the scaling back of SAF projects in the last few weeks which calls into question not the legitimacy of SAF projects but choosing only those with the best economics. Shell have exited a planned renewable hydrogen-based SAF project in Sweden with Vattenfall despite having a $87mn EU Innovation Fund grant and announced that they will temporarily halt work on the Pernis biofuels plants. They cite higher construction costs as the reason. BP have similarly announced the scaling back of SAF and renewable diesel projects. They have not yet indicated which, but they currently have plans in Europe at Lingen, Gelsenkirchen, Rotterdam and Castellon. Despite this announcement BP have indicated they will take full ownership of their 50/50 JV with Bunga Bioenergia, a Brazilian biofuels company where BP see potential new SAF and biogas projects. The common story is not so much that biofuels investment is over but more a rationalisation of where and at what cost. There are still many proposed SAF plants in Europe but we hear that the economics are challenging for sites to reach required returns on investment. With EU regulations starting at 2% next year and rapidly ramping up, analysis shows an ever-increasing shortfall. The red line on the chart below, shows the negative net balance. For supply to grow, the economics in Europe or outside the region have to be reasonable to justify investing. To make the economics work the price of SAF will have to increase.  

Energy giant Shell announced today that it has decided to pause construction on its large-scale biofuels facility in the Netherlands, citing market conditions. Shell announced its final investment decision on the Rotterdam-based facility in 2021, with anticipated capacity of 820,000 tonnes a year of biofuels production, and production initially targeted to begin in 2025, making it one of the largest in Europe to produce sustainable aviation fuel and renewable diesel from waste, and capable of producing enough renewable diesel to avoid 2.8 million tonnes of CO2 emissions per year. The announcement follows the release earlier this year by Shell of its updated energy transition strategy, including plans to invest $10-15 billion between 2023 and the end of 2025 in low-carbon energy solutions, in areas including electric vehicle charging, biofuels, renewable power, hydrogen and carbon capture and storage. https://lnkd.in/gEH3tAqy There are operational model changes https://lnkd.in/ghaiBUYf What is GAP Analysis and its Importance - https://lnkd.in/g7TDY9_6

As we move towards a zero-emission, climate-conscious world, oil companies are adapting. Royal Dutch Shell has laid out a detailed plan on staying relevant in this fast-paced transition. The strategic plan comprises five main pillars: 1️⃣ Massive rollout of EV charging stations; ⚡️ 2️⃣ A greater emphasis on lubricants, chemicals, and biofuels; 🧪💛 3️⃣ Increased renewable energy generation and carbon offsets; 🌿 4️⃣ Continued hydrogen and natural gas assets development while reducing oil production by 1-2% per year; 5️⃣ Heavy investments in carbon capture and storage. Shell aims to stay ahead of the transition curve, serving not just its shareholders but society at large. This is just another promising example of how businesses are becoming proactive in combating climate change. 📲 https://loom.ly/_JY1rIk | Source: TechCrunch #EnergyTransition #RenewableEnergy #ClimateChange #Shell #EVCharging