Shell Plc (LON:SHEL) has temporarily paused construction of a biofuels plant in the Netherlands in order to seek ways to cut the cost of the project.
“Temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project,” Huibert Vigeveno, Shell’s downstream, renewables and energy solutions director, said in a statement on Tuesday.
The facility being built at Shell’s energy and chemicals complex in Rotterdam will process 820,000 tons of sustainable aviation fuel and renewable diesel a year. Temporarily reducing activity at the site will help the company to “control costs and optimize project sequencing,” according to the statement. The company will give guidance in its trading update on Friday on whether the move will result in an impairment.
Shell remains committed to achieving net zero emissions by 2050 while using shareholder capital in a “measured and disciplined way, delivering more value with less emissions,” Vigeveno said.
Since taking the job in January last year, Shell Chief Executive Officer Wael Sawan has pledged to be “ruthless” in improving the company’s performance and boosting investor returns. That process has included eliminating jobs, selling assets and changing the pace at which it seeks to cut its carbon emissions.
